Microsoft Corporation $MSFT Shares Sold by Factory Mutual Insurance Co.

Key Points

• Factory Mutual Insurance Co. trimmed its stake in Microsoft by 4.0% in Q4, selling 42,150 shares and leaving it with 1,008,818 shares worth $487.9 million, about 4.9% of its portfolio and the firm's 2nd-largest holding.
• Microsoft beat Q3 expectations, reporting $4.27 EPS (vs. $4.04 consensus) and $82.89 billion revenue (up 18.3% YoY), with accelerating Azure growth and 20M paid Copilot users, though surging capex and restructuring are weighing on near-term margins.
• The company announced a quarterly dividend of $0.91 (ex-dividend May 21, payable June 11) and carries a MarketBeat consensus of "Moderate Buy" with a $563.72 target price.

Factory Mutual Insurance Co. trimmed its stake in shares of Microsoft Corporation (NASDAQ:MSFT - Free Report) by 4.0% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,008,818 shares of the software giant's stock after selling 42,150 shares during the quarter. Microsoft makes up about 4.9% of Factory Mutual Insurance Co.'s portfolio, making the stock its 2nd largest holding. Factory Mutual Insurance Co.'s holdings in Microsoft were worth $487,885,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC increased its position in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after purchasing an additional 20 shares in the last quarter. Bayforest Capital Ltd acquired a new position in Microsoft during the 3rd quarter worth approximately $38,000. LSV Asset Management acquired a new position in Microsoft during the 4th quarter worth approximately $44,000. Sellwood Investment Partners LLC bought a new stake in Microsoft during the 3rd quarter worth approximately $49,000. Finally, University of Illinois Foundation bought a new stake in Microsoft during the 2nd quarter worth approximately $50,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Stock Down 1.1%

Microsoft stock opened at $424.46 on Thursday. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 0.09. Microsoft Corporation has a 12-month low of $356.28 and a 12-month high of $555.45. The firm's fifty day moving average is $395.09 and its 200 day moving average is $448.65. The company has a market capitalization of $3.15 trillion, a PE ratio of 26.55, a PEG ratio of 1.60 and a beta of 1.11.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.04 by $0.23. Microsoft had a net margin of 39.04% and a return on equity of 32.34%. The company had revenue of $82.89 billion for the quarter, compared to the consensus estimate of $81.30 billion. During the same quarter in the previous year, the company earned $3.46 EPS. Microsoft's quarterly revenue was up 18.3% compared to the same quarter last year. As a group, sell-side analysts predict that Microsoft Corporation will post 16.54 EPS for the current fiscal year.

Microsoft Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be given a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Thursday, May 21st. Microsoft's payout ratio is presently 22.76%.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Q3 EPS beat and revenue roughly in line — Microsoft reported $4.27 EPS, ahead of consensus, and revenue near Street expectations, which helped validate the company’s growth trajectory. Microsoft (MSFT) Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Azure / Intelligent Cloud acceleration: management said cloud growth accelerated (company commentary and charts show mid-to-high‑30s/40% growth in Azure), easing investor worries that AI spending isn’t yet translating to demand. Microsoft tops Wall Street expectations, reports accelerating Azure growth and $37B AI run rate
• Positive Sentiment: Copilot adoption and monetization showing traction — Microsoft reported over 20M paid Copilot users with rising engagement, supporting future software/recurring-revenue upside. Microsoft says it has over 20M paid Copilot users
• Neutral Sentiment: Guidance roughly in line — Q4 revenue guidance was near consensus, so the company isn’t signaling an immediate downshift, but investors will watch next‑quarter detail for AI margin leverage. Press release / slide deck
• Neutral Sentiment: LinkedIn AI products on revenue track — Microsoft said LinkedIn hiring agents could reach ~$450M in annual revenue, a niche but tangible AI monetization path. LinkedIn's AI hiring agents on track for $450 million
• Negative Sentiment: CapEx surge and margin pressure — disclosures and third‑party summaries show capex rose sharply (large spend on data centers/AI hardware), which squeezes near‑term margins and fuels investor concern about ROI timing. Q3 earnings: capex surges (Quiver)
• Negative Sentiment: Partnership & competitive noise — OpenAI’s revised terms (non‑exclusive distribution) and the broader partner shifts to rivals like Amazon raise strategic questions about Microsoft’s privileged access and cloud leverage. OpenAI-Microsoft exclusivity reset coverage
• Negative Sentiment: Workforce and restructuring signals — Microsoft expects headcount to decline and has offered voluntary buyouts; that reduces near‑term payroll but underscores cost pressures tied to the AI buildout. Microsoft expects headcount to decrease

Insiders Place Their Bets

In related news, Director John W. Stanton bought 5,000 shares of the company's stock in a transaction that occurred on Wednesday, February 18th. The shares were bought at an average price of $397.35 per share, for a total transaction of $1,986,750.00. Following the transaction, the director directly owned 83,905 shares of the company's stock, valued at approximately $33,339,651.75. The trade was a 6.34% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kathleen T. Hogan sold 12,321 shares of the business's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $409.52, for a total transaction of $5,045,695.92. Following the transaction, the executive vice president owned 137,933 shares in the company, valued at $56,486,322.16. The trade was a 8.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.03% of the stock is owned by insiders.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Weiss Ratings lowered shares of Microsoft from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, March 24th. The Goldman Sachs Group reissued a "buy" rating on shares of Microsoft in a report on Thursday, February 12th. Wells Fargo & Company reduced their target price on shares of Microsoft from $630.00 to $615.00 and set an "overweight" rating on the stock in a report on Thursday, January 29th. JPMorgan Chase & Co. reduced their target price on shares of Microsoft from $575.00 to $550.00 and set an "overweight" rating on the stock in a report on Thursday, January 29th. Finally, Rothschild & Co Redburn reduced their target price on shares of Microsoft from $450.00 to $400.00 and set a "neutral" rating on the stock in a report on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Microsoft currently has an average rating of "Moderate Buy" and a consensus target price of $563.72.

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).

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