Microsoft (NASDAQ:MSFT) Price Target Lowered to $630.00 at Wells Fargo & Company

Microsoft (NASDAQ:MSFT) had its price target reduced by investment analysts at Wells Fargo & Company from $665.00 to $630.00 in a research note issued to investors on Thursday,MarketScreener reports. The firm currently has an “overweight” rating on the software giant’s stock. Wells Fargo & Company‘s price objective would indicate a potential upside of 40.58% from the company’s previous close.

Several other research firms have also recently weighed in on MSFT. Wolfe Research lowered their price objective on shares of Microsoft from $675.00 to $625.00 and set an “outperform” rating on the stock in a research report on Monday, December 15th. KeyCorp restated an “overweight” rating on shares of Microsoft in a research report on Thursday, October 30th. DA Davidson reiterated a “buy” rating and set a $650.00 price objective on shares of Microsoft in a research report on Thursday, December 4th. Arete Research boosted their target price on Microsoft from $710.00 to $730.00 in a research report on Monday, October 27th. Finally, Rothschild Redb downgraded shares of Microsoft from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 18th. Three research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Microsoft has an average rating of “Buy” and an average target price of $623.13.

Microsoft Price Performance

Shares of NASDAQ MSFT opened at $448.14 on Thursday. The stock’s 50-day simple moving average is $480.62 and its two-hundred day simple moving average is $501.75. Microsoft has a twelve month low of $344.79 and a twelve month high of $555.45. The firm has a market capitalization of $3.33 trillion, a P/E ratio of 31.79, a P/E/G ratio of 1.70 and a beta of 1.07. The company has a quick ratio of 1.39, a current ratio of 1.40 and a debt-to-equity ratio of 0.10.

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

Insider Activity

In other Microsoft news, insider Bradford L. Smith sold 38,500 shares of the business’s stock in a transaction on 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 transaction, the insider directly owned 461,597 shares of the company’s stock, valued at approximately $239,402,668.08. The trade was a 7.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Judson Althoff sold 12,750 shares of the company’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $491.52, for a total transaction of $6,266,880.00. Following the completion of the transaction, the chief executive officer owned 129,349 shares of the company’s stock, valued at $63,577,620.48. This trade represents a 8.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 54,100 shares of company stock valued at $27,598,872. Company insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

Several hedge funds and other institutional investors have recently modified their holdings of the stock. WFA Asset Management Corp grew its position in shares of Microsoft by 27.0% in the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after buying an additional 216 shares during the period. Ironwood Wealth Management LLC. boosted its stake in Microsoft by 0.3% during the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after acquiring an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC grew its holdings in Microsoft by 410.4% in the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after purchasing an additional 2,138 shares during the period. Wealth Group Ltd. grew its holdings in Microsoft by 1.2% in the fourth quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after purchasing an additional 28 shares during the period. Finally, Eagle Capital Management LLC increased its stake in shares of Microsoft by 0.4% during the fourth quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock valued at $9,735,000 after purchasing an additional 96 shares in the last quarter. 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: Large brand & technology deal with Mercedes-AMG PETRONAS F1 — Microsoft will integrate Azure and AI tools with the team in a multi‑year sponsorship, a visible commercial showcase that supports enterprise AI positioning and marketing momentum. Mercedes reveal images of 2026 F1 car, announce Microsoft deal
• Positive Sentiment: U.S. defense contract: Microsoft won a $170.44M Air Force Cloud One task order for Azure services through Dec. 2028 — small relative to MSFT’s scale but a recurring win that validates Azure in government cloud. Microsoft (MSFT) Stock: Air Force Awards $170 Million Cloud One Contract
• Neutral Sentiment: Wall Street remains mixed but not uniformly negative: some firms trimmed targets yet kept Buy ratings (TD Cowen, Citigroup, Goldman maintained a high PT), leaving analyst coverage a mix of supportive and cautious views ahead of earnings. All Eyes on Microsoft Stock Ahead of Earnings Next Week; Here’s What Wall Street Expects
• Neutral Sentiment: Market is focused on the Jan. 28 earnings date — expectations are high for AI/cloud growth but the report is a near‑term catalyst that could increase volatility. Dear Microsoft Stock Fans, Mark Your Calendars for January 28
• Negative Sentiment: Analyst downgrades and lower price targets are hitting sentiment — some outlets and firms are flagging downside scenarios and trimming targets, which amplifies selling pressure amid already weaker tape. Microsoft Stock To $350?
• Negative Sentiment: Rothschild & Co Redburn cut its target and moved to Neutral — another explicit downgrade that can prompt short‑term outflows from model/quant strategies. Rothschild & Co Redburn adjusts price target on Microsoft to 450
• Negative Sentiment: Broader investor caution on AI spending and bubble talk: CEO comments and wider debate about energy costs, data‑center capacity and whether AI investment scales beyond Big Tech are weighing on confidence in further near‑term multiple expansion. Satya Nadella’s biggest AI bubble warning yet
• Negative Sentiment: Institutional moves and share supply: reports of a hedge fund trimming MSFT exposure and Microsoft (and partners) selling shares in PhonePe’s IPO add marginal selling pressure and headline noise. Cypress Funds LLC Cuts Microsoft Stake

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).