Microsoft Corporation (NASDAQ:MSFT) Sees Significant Decrease in Short Interest

Microsoft Corporation (NASDAQ:MSFT) was the recipient of a large drop in short interest during 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. Currently, 0.7% of the shares of the stock are sold short. Based on an average trading volume of 20,803,939 shares, the days-to-cover ratio is currently 2.5 days. Based on an average trading volume of 20,803,939 shares, the days-to-cover ratio is currently 2.5 days. Currently, 0.7% of the shares of the stock are sold short.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Analyst and Street optimism — Wedbush’s Dan Ives and others are positioning Microsoft as set for strong Q4 results tied to AI/cloud momentum, helping lift sentiment ahead of earnings. Dan Ives: Very Strong Q4 Earnings
• Positive Sentiment: Broker reaffirmation — Morgan Stanley kept an Overweight rating and high $650 target based on survey data showing rising enterprise software spend, supporting longer‑term upside expectations. Morgan Stanley Overweight
• Positive Sentiment: OpenAI monetization boost — OpenAI’s worldwide rollout of the lower‑cost ChatGPT Go subscription expands the addressable market for AI services where Microsoft has strategic exposure, lifting revenue hopes. OpenAI ChatGPT Go Worldwide
• Positive Sentiment: Data‑center expansion/community plan — News of a $500M–$1B Michigan data‑center push and Microsoft’s “community‑first” messaging shows continued capex to support Azure/AI growth, which investors view as reinforcing future revenue streams despite near‑term costs. Michigan Data Center Investment
• Neutral Sentiment: Technical/short‑term rebound thesis — Some analysts note MSFT is oversold and could see a technical bounce ahead of earnings, which supports trading interest but is not a fundamental catalyst. Zacks: Ripe for Turnaround
• Neutral Sentiment: Minor operational housekeeping — The company closed some on‑campus libraries, a small cost/real‑estate move that got attention but is unlikely to materially affect earnings. MSFT Shuts Libraries
• Negative Sentiment: Regulatory probe into Activision Blizzard — Italy opened investigations into alleged “misleading and aggressive” in‑game purchase practices for Call of Duty Mobile and Diablo Immortal, creating reputational and potential financial risk for MSFT’s gaming unit. Italy Investigates Activision
• Negative Sentiment: Legal risk from Musk trial — A judge cleared Elon Musk’s suit against OpenAI and Microsoft to proceed to a jury trial in April, introducing headline legal overhang and potential distraction/costs. Musk Trial Moves Forward
• Negative Sentiment: Regulatory scrutiny and analyst trim — Switzerland opened a probe into Microsoft’s licensing fees and Barclays lowered its price target, both adding near‑term headwinds to sentiment amid capex worries and noted insider selling. Swiss Probe into Licensing Fees

Analyst Ratings Changes

MSFT has been the topic of a number of research reports. Wedbush restated an “outperform” rating and set a $625.00 price target on shares of Microsoft in a research report on Monday, December 22nd. Rothschild Redb lowered Microsoft from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 18th. Mizuho downgraded Microsoft from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 18th. Stifel Nicolaus set a $640.00 price target on shares of Microsoft in a research report on Thursday, October 30th. Finally, Oppenheimer restated an “outperform” rating on shares of Microsoft in a report on Thursday, October 30th. Three research analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Microsoft currently has an average rating of “Moderate Buy” and a consensus price target of $630.37.

Microsoft Stock Up 0.7%

Shares of NASDAQ MSFT opened at $459.86 on Friday. The firm’s fifty day moving average is $483.97 and its 200 day moving average is $502.65. Microsoft has a 52 week low of $344.79 and a 52 week high of $555.45. The company has a quick ratio of 1.39, a current ratio of 1.40 and a debt-to-equity ratio of 0.10. The company has a market cap of $3.42 trillion, a price-to-earnings ratio of 32.71, a PEG ratio of 1.72 and a beta of 1.07.

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

Microsoft Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be issued a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Thursday, February 19th. Microsoft’s payout ratio is currently 25.89%.

Insider Transactions at Microsoft

In related news, insider Bradford L. Smith sold 38,500 shares of the company’s stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $518.64, for a total value of $19,967,640.00. Following the transaction, the insider directly owned 461,597 shares in the company, valued at approximately $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 Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Judson Althoff sold 12,750 shares of Microsoft 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 sale, the chief executive officer owned 129,349 shares of the company’s stock, valued at approximately $63,577,620.48. The trade was a 8.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 54,100 shares of company stock valued at $27,598,872. 0.03% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Microsoft

A number of large investors have recently made changes to their positions in the business. StoneCrest Wealth Management Inc. increased its stake in shares of Microsoft by 3.2% during the fourth quarter. StoneCrest Wealth Management Inc. now owns 13,567 shares of the software giant’s stock valued at $6,561,000 after buying an additional 415 shares during the period. MRA Advisory Group boosted its holdings in Microsoft by 5.4% in the fourth quarter. MRA Advisory Group now owns 12,350 shares of the software giant’s stock valued at $5,973,000 after acquiring an additional 634 shares in the last quarter. Bouchey Financial Group Ltd increased its position in Microsoft by 3.1% during the 4th quarter. Bouchey Financial Group Ltd now owns 14,306 shares of the software giant’s stock valued at $6,918,000 after purchasing an additional 434 shares during the period. M3 Advisory Group LLC raised its holdings in Microsoft by 2.0% in the 4th quarter. M3 Advisory Group LLC now owns 6,001 shares of the software giant’s stock worth $2,902,000 after purchasing an additional 118 shares in the last quarter. Finally, Forte Asset Management LLC lifted its position in shares of Microsoft by 91.9% in the 4th quarter. Forte Asset Management LLC now owns 23,518 shares of the software giant’s stock worth $11,374,000 after purchasing an additional 11,264 shares during the period. 71.13% of the stock is currently owned by institutional investors.

Microsoft Company Profile

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).