Microsoft Corporation (NASDAQ:MSFT) Short Interest Down 20.6% in December

Microsoft Corporation (NASDAQ:MSFT) was the target of a significant drop in short interest in the month of December. As of December 31st, there was short interest totaling 52,944,379 shares, a drop of 20.6% from the December 15th total of 66,675,893 shares. Based on an average daily volume of 20,803,939 shares, the short-interest ratio is currently 2.5 days. Currently, 0.7% of the shares of the company are sold short. Currently, 0.7% of the shares of the company are sold short. Based on an average daily volume of 20,803,939 shares, the short-interest ratio is currently 2.5 days.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on MSFT shares. HSBC boosted their target price on shares of Microsoft from $643.00 to $648.00 in a report on Monday, October 27th. BMO Capital Markets lowered their target price on Microsoft from $650.00 to $625.00 and set an “outperform” rating on the stock in a research report on Thursday, October 30th. Evercore ISI set a $640.00 price target on Microsoft in a research note on Thursday, October 30th. Wolfe Research dropped their price target on Microsoft from $675.00 to $625.00 and set an “outperform” rating on the stock in a report on Monday, December 15th. Finally, Redburn Partners set a $560.00 price target on shares of Microsoft in a research report on Wednesday, October 22nd. Three research analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $630.37.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: OpenAI reported it hit a >$20B revenue target in 2025 — a direct positive for Microsoft because higher OpenAI sales boost demand for Azure compute, licensing and co?commercial opportunities with MSFT. Microsoft-Backed OpenAI Hits $20B Revenue Target in 2025
• Positive Sentiment: OpenAI says 2026 will be a turning point for practical AI adoption — signals accelerating enterprise uptake of AI tools that feed Azure consumption and Microsoft’s AI product stack. OpenAI Says 2026 Will Be a Turning Point for Practical AI Adoption
• Positive Sentiment: Goldman and other firms have been bullish on MSFT’s AI/cloud leadership (Goldman’s coverage implies material upside), reinforcing investor confidence in MSFT’s growth trajectory tied to enterprise AI. Microsoft Corporation (MSFT) Seen with 37% Upside as Goldman Highlights AI and Cloud Leadership
• Positive Sentiment: Overall analyst sentiment remains strongly bullish despite some price?target trimming and heavy AI investment — many analysts still see sizable upside, which supports buying interest. Strong Analyst Sentiment on Microsoft (MSFT) Despite Price Target Cuts and Heavy AI Spend
• Neutral Sentiment: MSFT is highlighted on several AI/cloud “top picks” and ETFs — useful for flows into the stock but a slower, less direct catalyst than OpenAI revenue. Top AI Stocks to Boost Returns and Reignite Portfolio Growth
• Neutral Sentiment: Operational/ESG moves — large carbon removal purchases and initiatives to lower data?center energy use support long?term cost control and reputational upside but are not immediate revenue drivers. Microsoft Kicks Off 2026 With Flurry Of Large-Scale Carbon Removal Purchase Deals
• Negative Sentiment: Legal overhang: Elon Musk filed claims seeking up to $134B from OpenAI and Microsoft — creates headline risk and uncertainty even if chances of material payout are unclear. Elon Musk Claims OpenAI and Microsoft Gained $134 Billion From His Early AI Work
• Negative Sentiment: Negative investor commentary and skeptics (e.g., Michael Burry, critical pieces) warn that AI spending and valuation could be overheated — increases volatility and could pressure multiples if led by macro or earnings disappointment. ‘Big Short’ investor Michael Burry says the AI boom will end badly
• Negative Sentiment: Some critical analysis questions MSFT’s valuation and near?term mix (see Seeking Alpha); combined with heavy AI spending, this fuels debate over margin/ROI timing. Microsoft: Something Doesn’t Add Up

Microsoft Stock Up 0.7%

MSFT traded up $3.20 on Monday, hitting $459.86. The company had a trading volume of 33,744,063 shares, compared to its average volume of 19,858,670. The stock has a fifty day simple moving average of $483.97 and a 200-day simple moving average of $502.73. The firm has a market capitalization of $3.42 trillion, a P/E ratio of 32.71, a P/E/G ratio of 1.72 and a beta of 1.07. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.40 and a quick ratio of 1.39. Microsoft has a 52-week low of $344.79 and a 52-week high of $555.45.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, October 29th. The software giant reported $4.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.65 by $0.48. The firm had revenue of $77.67 billion for the quarter, compared to the consensus estimate of $75.49 billion. Microsoft had a return on equity of 32.45% and a net margin of 35.71%.The company’s quarterly revenue was up 18.4% on a year-over-year basis. During the same period in the prior year, the company posted $3.30 earnings per share. As a group, equities analysts expect that Microsoft will post 13.08 EPS for the current fiscal year.

Microsoft Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be given a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, February 19th. Microsoft’s payout ratio is 25.89%.

Insider Buying and Selling

In related news, insider Bradford L. Smith sold 38,500 shares of the company’s stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $518.64, for a total transaction of $19,967,640.00. Following the completion of the sale, the insider owned 461,597 shares of the company’s stock, valued at $239,402,668.08. This represents a 7.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Judson Althoff sold 12,750 shares of the business’s stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $491.52, for a total transaction of $6,266,880.00. Following the transaction, the chief executive officer owned 129,349 shares of the company’s stock, valued at approximately $63,577,620.48. This represents a 8.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 54,100 shares of company stock valued at $27,598,872. 0.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in MSFT. Norges Bank acquired a new position in Microsoft during the 2nd quarter valued at about $50,493,678,000. Kingstone Capital Partners Texas LLC lifted its stake in shares of Microsoft by 564,387.1% during the second quarter. Kingstone Capital Partners Texas LLC now owns 90,549,369 shares of the software giant’s stock worth $45,040,162,000 after buying an additional 90,533,328 shares during the period. Nuveen LLC acquired a new stake in Microsoft during the 1st quarter worth about $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Microsoft by 500.0% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock valued at $30,840,432,000 after purchasing an additional 49,618,571 shares during the last quarter. Finally, Laurel Wealth Advisors LLC increased its holdings in shares of Microsoft by 49,640.3% in the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock valued at $14,905,904,000 after purchasing an additional 29,906,791 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).