Microsoft (NASDAQ:MSFT) Given Buy Rating at Truist Financial

Microsoft (NASDAQ:MSFT)‘s stock had its “buy” rating restated by stock analysts at Truist Financial in a research report issued to clients and investors on Monday, Benzinga reports. They currently have a $600.00 price objective on the software giant’s stock, up from their prior price objective of $575.00. Truist Financial‘s target price would suggest a potential upside of 13.20% from the company’s previous close.

MSFT has been the topic of a number of other reports. Jefferies Financial Group boosted their price objective on shares of Microsoft from $575.00 to $650.00 and gave the company a “buy” rating in a report on Wednesday, October 14th. Needham & Company LLC started coverage on shares of Microsoft in a report on Wednesday, September 23rd. They issued a “buy” rating on the stock. Evercore raised shares of Microsoft from an “underperform” rating to an “outperform” rating in a research report on Monday, October 5th. CLSA reaffirmed an “outperform” rating on shares of Microsoft in a report on Thursday, July 30th. Finally, KeyCorp reiterated an “overweight” rating on shares of Microsoft in a research note on Thursday, September 3rd. Forty-three investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $594.11.

Microsoft Stock Up 1.1%

Shares of MSFT traded up $5.51 during midday trading on Monday, hitting $530.02. 3,043,129 shares of the company’s stock traded hands, compared to its average volume of 33,471,395. The firm’s fifty day moving average is $508.51 and its 200-day moving average is $446.69. Microsoft has a 1 year low of $349.20 and a 1 year high of $553.72. The stock has a market capitalization of $3.94 trillion, a price-to-earnings ratio of 29.54, a price-to-earnings-growth ratio of 1.68 and a beta of 1.10. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. During the same period last year, the business posted $3.65 earnings per share. The firm’s revenue was up 17.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Microsoft will post 19.66 earnings per share for the current year.

Insider Activity

In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the transaction, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Amy Hood sold 41,674 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the sale, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 150,314 shares of company stock valued at $75,404,992 in the last quarter. Company insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

Institutional investors and hedge funds have recently modified their holdings of the business. Montgomery Financial Services LLC purchased a new position in shares of Microsoft during the 2nd quarter valued at approximately $26,000. Frankly Finances LLC acquired a new position in Microsoft during the second quarter worth $35,000. Bard Associates Inc. acquired a new position in Microsoft during the second quarter worth $37,000. PMV Capital Advisers LLC purchased a new position in Microsoft during the second quarter valued at $38,000. Finally, Fiduciary Advisors Inc. grew its position in shares of Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after purchasing an additional 34 shares during the period. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Oppenheimer raised its Microsoft price target to $625 from $570 and maintained an Outperform rating, citing strong demand ahead of earnings. The broader analyst consensus target is approximately $592.15. Oppenheimer raises Microsoft target ahead of earnings amid demand strength
• Positive Sentiment: Analysts and investors argue Microsoft is better positioned than many peers to absorb its AI infrastructure spending because of its diversified revenue base, recurring software business, growing dividend, and potentially positive free cash flow. Its Azure business is estimated at roughly $100 billion in annualized revenue and is expected to grow rapidly. Microsoft may be the only hyperscaler to stay cash-flow positive
• Positive Sentiment: Microsoft reportedly received $184.2 million in net ETF buying on October 22, indicating continued institutional demand ahead of the results. Microsoft sees net ETF buying
• Neutral Sentiment: Options traders anticipate a potentially large post-earnings move that could take MSFT back toward its recent record, underscoring elevated event risk rather than signaling a specific direction. Traders anticipate Microsoft earnings move
• Negative Sentiment: The main concern is valuation and spending: Microsoft’s large AI and data-center buildout could pressure free cash flow if Azure growth or monetization disappoints. Some analysts expect lower earnings, while bearish commentary questions whether slowing earnings growth can support a premium valuation. Microsoft’s AI spending and Azure growth
• Negative Sentiment: Microsoft’s record backlog, although supportive of future demand, also reflects substantial commitments to AI infrastructure and carries execution and capital-allocation risks compared with more diversified cloud models. Microsoft versus Oracle backlog risks

Microsoft Company Profile

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.