Microsoft (NASDAQ:MSFT) Stock Rating Reaffirmed as “Buy” by JPMorgan Chase & Co.

by · The Markets Daily

Microsoft (NASDAQ:MSFT – Get Free Report)‘s stock had its “buy” rating restated by analysts at JPMorgan Chase & Co. in a research report issued on Monday.

Several other analysts also recently weighed in on the company. CLSA reaffirmed an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Jefferies Financial Group reissued a “buy” rating on shares of Microsoft in a research note on Monday, September 21st. Piper Sandler raised their price target on Microsoft from $540.00 to $550.00 and gave the company an “overweight” rating in a report on Tuesday, July 28th. Weiss Ratings upgraded shares of Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 27th. Finally, Scotiabank reaffirmed an “outperform” rating and issued a $510.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $569.29.

Check Out Our Latest Stock Analysis on MSFT

Microsoft Trading Down 0.1%

Microsoft stock opened at $508.96 on Monday. Microsoft has a 52-week low of $349.20 and a 52-week high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $3.78 trillion, a price-to-earnings ratio of 28.34, a PEG ratio of 1.64 and a beta of 1.11. The firm has a 50-day moving average price of $482.29 and a two-hundred day moving average price of $427.75.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft’s revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the business earned $3.65 earnings per share. Sell-side analysts expect that Microsoft will post 19.62 earnings per share for the current year.

Insider Transactions at Microsoft

In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the sale, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 143,009 shares of company stock worth $71,420,699. Corporate insiders own 0.03% of the company’s stock.

Institutional Trading of Microsoft

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Montgomery Financial Services LLC acquired a new position in shares of Microsoft in the 2nd quarter valued at $26,000. Frankly Finances LLC acquired a new stake in Microsoft during the 2nd quarter worth about $35,000. Bard Associates Inc. purchased a new stake in Microsoft during the second quarter valued at about $37,000. PMV Capital Advisers LLC purchased a new stake in Microsoft during the second quarter valued at about $38,000. Finally, MidAtlantic Capital Management Inc. acquired a new position in shares of Microsoft in the fourth quarter worth about $59,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

  • Positive Sentiment: Copilot remains the primary catalyst. Jefferies reiterated its bullish view, citing Microsoft’s redesigned Copilot, new usage-based revenue opportunities and potential for paid Copilot seats to double over the next year. Enterprise AI adoption, however, is expected to build gradually. Jefferies Doubles Down on Microsoft’s Copilot Opportunity
  • Positive Sentiment: Analysts see further upside. JPMorgan maintained a Buy rating with a $625 target, while RBC reportedly set a $640 target, supported by Azure growth, Copilot adoption and Microsoft’s expanding AI infrastructure. The stock is also on track for its strongest quarterly performance in decades, reflecting a market “flight to quality.” Microsoft Stock Surges Past $500
  • Positive Sentiment: Azure and enterprise demand support the long-term case. Recent commentary points to Azure growth above 40%, rapidly increasing Copilot seats and a commercial backlog approaching $700 billion. Microsoft is also bringing OpenAI’s autonomous “Dots” AI workers into its enterprise security ecosystem, potentially expanding cloud and software consumption. Microsoft Brings OpenAI’s Autonomous Dots AI Workers Into the Enterprise
  • Neutral Sentiment: AI policy developments remain mixed. President Trump reaffirmed support for data centers and announced voluntary AI controls with Microsoft and other technology companies, potentially easing regulatory concerns while leaving uncertainty over whether voluntary safeguards will be sufficient. At A.I. Event, Trump Asks Meta, OpenAI and Microsoft to Make Safety Decisions Themselves
  • Negative Sentiment: Privacy and competitive risks are weighing on sentiment. Reports that humans may review some Copilot prompts have raised data-privacy concerns. OpenAI is also launching workplace features that increasingly resemble Microsoft Office, intensifying the risk that a key partner could compete directly with Microsoft’s software franchise. OpenAI Takes on Microsoft With a ChatGPT Office Suite
  • Negative Sentiment: Investors are questioning the cost and valuation of the AI buildout. Microsoft is reducing staff while committing heavily to data centers, and some analysts argue that cash-flow benefits may take longer to materialize. After its rally, elevated expectations leave less room for execution setbacks.

Microsoft Company Profile

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Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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