Microsoft Corporation (MSFT) Shares on the Decline: Short-term Analysis

Microsoft Corporation [MSFT] stock is trading at $507.03, down -0.61%. It is a good measure of the stock’s recent performance to check whether the stock’s short-term value is rising or falling. The MSFT shares have lost -0.28% over the last week, with a monthly amount glided 0.99%, and seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

Microsoft Corporation [NASDAQ: MSFT] stock has seen the most recent analyst activity on July 31, 2025, when KeyBanc Capital Markets upgraded its rating to a Overweight but kept the price target unchanged to $630 for it. Previously, Wells Fargo reaffirmed its Overweight rating on July 31, 2025, and elevated its price target to $650. On July 31, 2025, Wedbush reiterated its Outperform rating and revised its price target to $625 on the stock. UBS reiterated its Buy rating and increased its price target to $650 on July 31, 2025. TD Cowen reiterated its recommendation of a Buy and raised its price target to $640 on July 31, 2025. Oppenheimer reiterated a Outperform rating for this stock on July 31, 2025, and upped its price target to $630. In a note dated July 31, 2025, Morgan Stanley reiterated an Overweight rating on this stock and boosted its target price from $530 to $582.

Microsoft Corporation [MSFT] stock has fluctuated between $344.79 and $555.45 over the past year. Currently, Wall Street analysts expect the stock to reach $613.91 within the next 12 months. Microsoft Corporation [NASDAQ: MSFT] shares were valued at $507.03 at the most recent close of the market. An investor can expect a potential return of 21.08% based on the average MSFT price forecast.

Analyzing the MSFT fundamentals

Microsoft Corporation [NASDAQ:MSFT] reported sales of 281.72B for the trailing twelve months, which represents a growth of 18.10%. Gross Profit Margin for this corporation currently stands at 0.69% with Operating Profit Margin at 0.46%, Pretax Profit Margin comes in at 0.44%, and Net Profit Margin reading is 0.36%. To continue investigating profitability, this company’s Return on Assets is posted at 0.16, Equity is 0.32 and Total Capital is 0.27. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.18.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 504.71 points at the first support level, and at 502.39 for the second support level. However, for the 1st resistance point, the stock is sitting at 509.68, and for the 2nd resistance point, it is at 512.33.

Ratios To Look Out For

For context, Microsoft Corporation’s Current Ratio is 1.35. Further, the Quick Ratio stands at 1.35, while the Cash Ratio is 0.21. Considering the valuation of this stock, the price to sales ratio is 13.38, the price to book ratio is 10.97 and price to earnings (TTM) ratio is 37.17.

Transactions by insiders

Recent insider trading involved Nadella Satya, Chief Executive Officer, that happened on Sep 03 ’25 when 0.15 million shares were sold. Director, SATYA NADELLA completed a deal on Sep 03 ’25 to buy 0.15 million shares. Meanwhile, EVP, Chief Marketing Officer Numoto Takeshi sold 4850.0 shares on Aug 12 ’25.

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