Factory Mutual Insurance Co. Cuts Holdings in Microsoft Corporation $MSFT

Factory Mutual Insurance Co. reduced its stake in Microsoft Corporation (NASDAQ:MSFT) by 1.5% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,050,968 shares of the software giant’s stock after selling 16,300 shares during the period. Microsoft accounts for about 5.3% of Factory Mutual Insurance Co.’s investment portfolio, making the stock its 2nd biggest holding. Factory Mutual Insurance Co.’s holdings in Microsoft were worth $544,349,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Longfellow Investment Management Co. LLC grew its position in shares of 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 acquiring an additional 20 shares during the last quarter. Bayforest Capital Ltd acquired a new stake in shares of Microsoft in the 3rd quarter worth about $38,000. LSV Asset Management bought a new stake in Microsoft in the 4th quarter valued at about $44,000. Sellwood Investment Partners LLC bought a new stake in Microsoft in the 3rd quarter valued at about $49,000. Finally, University of Illinois Foundation acquired a new position in Microsoft during the 2nd quarter valued at about $50,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Jefferies reiterates a bullish view on Microsoft, naming MSFT its leading AI investment and assigning a $675 price target — a vote of confidence that supports upside for the stock. Jefferies Names Microsoft (MSFT) Stock Its Leading AI Investment With $675 Price Target
• Positive Sentiment: Microsoft signed an AI collaboration with Codelco (Chile’s state miner) to evaluate AI, automation and analytics for mining — another enterprise win that strengthens Azure/Microsoft AI cash flows over time. Codelco, Microsoft sign AI deal for mining operations
• Positive Sentiment: OpenAI’s large funding round and continued strategic ties give Microsoft breathing room around its AI investments and partnerships, reducing near-term partnership tail-risk. OpenAI Funding Gives Microsoft (MSFT) Stock Breathing Space
• Neutral Sentiment: Microsoft says it will continue integrating Anthropic’s Claude into products despite the Pentagon labeling Anthropic a “supply chain risk” — continuity for product roadmaps but with some government-contract uncertainty. Microsoft (MSFT) Maintains Anthropic Claude Integration Despite Pentagon Supply Chain Ban
• Neutral Sentiment: Google and Microsoft both said Anthropic remains available for non-defense projects, which limits immediate disruption but keeps regulatory headlines in play. Google joins Microsoft in telling users Anthropic is still available outside defense projects
• Neutral Sentiment: Options strategists and some investors view the pullback as a buying opportunity (protective collar strategies highlighted), indicating increased interest from longer-term/hedged buyers even amid volatility. Trade the Deep Value and Dubious Option Pricing in Microsoft Stock with This 1 Great Options Strategy
• Negative Sentiment: Analysts and commentators flag downside risk before MSFT can justify very high targets — concerns center on heavy AI-related capex, moderating Azure growth and margin pressure despite long-term upside. That debate is creating selling pressure and volatility. Buy the Dip or Wait? Analyst Flags Downside Risk Before $680 Breakout In Microsoft (MSFT) Stock
• Negative Sentiment: Regulatory risk: Japan’s antitrust probe into Microsoft’s cloud/software practices adds regional legal uncertainty that could weigh on valuation multiple or deal activity in Asia. Microsoft Faces Japan Antitrust Probe As Gaming Shifts And AI Deals Grow
• Negative Sentiment: Broader market pressures — rising yields, higher energy prices and sector rotation — are pulling down high-multiple software names; Microsoft’s heavy AI spend makes it more sensitive to sentiment swings despite strong fundamentals. How Microsoft Stock Falls To $325?

Analysts Set New Price Targets

Several research firms have commented on MSFT. DZ Bank restated a “buy” rating on shares of Microsoft in a research report on Thursday, January 29th. Wells Fargo & Company reduced their price objective on Microsoft from $630.00 to $615.00 and set an “overweight” rating for the company in a research report on Thursday, January 29th. KeyCorp decreased their price objective on Microsoft from $630.00 to $600.00 and set an “overweight” rating for the company in a report on Thursday, January 29th. Deutsche Bank Aktiengesellschaft lowered their target price on Microsoft from $630.00 to $575.00 and set a “buy” rating on the stock in a research report on Thursday, January 29th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and set a $641.00 target price (down from $645.00) on shares of Microsoft in a research note on Thursday, January 29th. Two analysts have rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, Microsoft has a consensus rating of “Moderate Buy” and a consensus target price of $591.95.

Insider Activity

In other news, Director John W. Stanton purchased 5,000 shares of the stock in a transaction dated Wednesday, February 18th. The shares were bought at an average cost of $397.35 per share, for a total transaction of $1,986,750.00. Following the transaction, the director owned 83,905 shares in the company, valued at $33,339,651.75. This trade represents a 6.34% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.03% of the company’s stock.

Microsoft Trading Down 0.4%

Microsoft stock opened at $408.96 on Friday. The firm has a 50 day simple moving average of $435.41 and a 200-day simple moving average of $479.57. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.39 and a quick ratio of 1.38. The stock has a market capitalization of $3.04 trillion, a PE ratio of 25.58, a price-to-earnings-growth ratio of 1.60 and a beta of 1.10. Microsoft Corporation has a 12-month low of $344.79 and a 12-month high of $555.45.

Microsoft (NASDAQ:MSFT) last announced its earnings results on Wednesday, January 28th. The software giant reported $4.14 EPS for the quarter, topping the consensus estimate of $3.86 by $0.28. The firm had revenue of $81.27 billion for the quarter, compared to analysts’ expectations of $80.28 billion. Microsoft had a return on equity of 32.34% and a net margin of 39.04%.The firm’s quarterly revenue was up 16.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.23 earnings per share. As a group, equities research analysts expect that Microsoft Corporation will post 13.08 EPS for the current fiscal year.

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).