Microsoft (NASDAQ:MSFT) Stock Price Up 2.3% – Here’s What Happened

Microsoft Corporation (NASDAQ:MSFT)’s share price shot up 2.3% during mid-day trading on Monday . The stock traded as high as $401.75 and last traded at $399.76. 31,989,742 shares were traded during trading, a decline of 11% from the average session volume of 35,844,875 shares. The stock had previously closed at $390.74.

Key Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s CEO Satya Nadella said AI could reshape industries and highlighted the company’s ongoing push to stay at the center of that shift, reinforcing the bull case for Microsoft’s cloud and AI franchise. “Hollows Out Entire Industries”: Microsoft Stock (NASDAQ:MSFT) Gains With Nadella’s New Alarm
• Positive Sentiment: Microsoft expanded its Marketplace with NuPlay, which should support broader adoption of Azure and other Microsoft products by making it easier for enterprise customers to deploy AI solutions. NuPlay Now Available in the Microsoft Marketplace
• Positive Sentiment: Microsoft unveiled a new coding model at its Build event, signaling continued investment in AI tools that could strengthen its competitive position versus rivals like Anthropic and Google over time. Microsoft Just Unveiled a New Coding Model — and the Real Question Is Whether It Can Stand Toe‑to‑Toe With Claude Code
• Positive Sentiment: Reports that Microsoft may spin off Xbox, combined with commentary that Xbox must become “sustainable,” suggest a possible restructuring that could improve margins and reduce pressure on the gaming segment. Microsoft Stock (MSFT) Jumps as CEO Satya Nadella Says Xbox Needs to Become ‘Sustainable’
• Neutral Sentiment: Microsoft’s partnership ecosystem remains active, with Nurix’s NuPlay now available in Microsoft Marketplace, but the direct financial impact appears limited for now. NuPlay Now Available in the Microsoft Marketplace
• Negative Sentiment: Shareholders filed a class-action lawsuit alleging Microsoft misled investors about slowing Azure growth and the scale of AI infrastructure spending, which adds headline risk and could pressure sentiment. Microsoft sued by shareholders over expenses, cloud business, AI
• Negative Sentiment: Several articles noted insider selling and a recent pullback in Microsoft shares, reflecting investor concern that the stock has lost momentum after a sharp run-up. Monster insider trading alert for Microsoft stock in June

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on MSFT. Benchmark reiterated a “buy” rating and set a $525.00 price objective (up from $450.00) on shares of Microsoft in a research report on Tuesday, April 28th. Scotiabank reduced their price objective on shares of Microsoft from $600.00 to $550.00 and set an “outperform” rating on the stock in a research report on Thursday, April 30th. Wells Fargo & Company lifted their price objective on shares of Microsoft from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Monday, June 1st. Bank of America began coverage on shares of Microsoft in a research report on Tuesday, March 24th. They set a “buy” rating and a $500.00 price objective on the stock. Finally, William Blair reiterated an “outperform” rating on shares of Microsoft in a research report on Monday, March 9th. Forty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $561.20.

Microsoft Price Performance

The firm’s 50-day moving average is $411.08 and its two-hundred day moving average is $428.64. The company has a market cap of $2.97 trillion, a P/E ratio of 23.80, a PEG ratio of 1.41 and a beta of 1.11. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.06 by $0.21. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The company had revenue of $82.89 billion for the quarter, compared to analysts’ expectations of $81.44 billion. During the same quarter in the previous year, the business posted $3.46 earnings per share. Microsoft’s quarterly revenue was up 18.3% on a year-over-year basis. Analysts anticipate that Microsoft Corporation will post 16.76 earnings per share for the current year.

Microsoft Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, August 20th. Microsoft’s payout ratio is currently 21.67%.

Insider Buying and Selling

In related news, EVP Amy Coleman sold 1,262 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the sale, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Takeshi Numoto sold 4,500 shares of Microsoft stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the transaction, the executive vice president directly owned 47,468 shares of the company’s stock, valued at $19,122,009.12. The trade was a 8.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 23,762 shares of company stock worth $10,508,361. Insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Longfellow Investment Management Co. LLC boosted its stake in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after buying an additional 20 shares during the period. Bernzott Capital Advisors purchased a new position in Microsoft during the fourth quarter worth $34,000. Timmons Wealth Management LLC purchased a new position in Microsoft during the fourth quarter worth $36,000. Fairway Wealth LLC boosted its stake in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after buying an additional 66 shares during the period. Finally, LSV Asset Management purchased a new position in Microsoft during the fourth quarter worth $44,000. 71.13% of the stock is 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).