Have Insiders Sold Microsoft Corporation (NASDAQ:MSFT) Shares Recently? - Simply Wall St

We’d be surprised if Microsoft Corporation (NASDAQ:MSFT) shareholders haven’t noticed that the , Christopher Capossela, recently sold US$483k worth of stock at US$138 per share. On the bright side, that sale was only-2.6% of their holding, so we doubt it’s very meaningful, on its own.

See our latest analysis for Microsoft

The Last 12 Months Of Insider Transactions At Microsoft

The President & Chief Legal Officer, Bradford Smith, made the biggest insider sale in the last 12 months. That single transaction was for US$25m worth of shares at a price of US$130 each. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$134. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 23.1% of Bradford Smith’s holding.

Over the last year, we note insiders sold 566k shares worth US$67m. Insiders in Microsoft didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:MSFT Recent Insider Trading, August 15th 2019

Does Microsoft Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Microsoft insiders own 1.4% of the company, currently worth about US$14b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Microsoft Tell Us?

Insiders haven’t bought Microsoft stock in the last three months, but there was some selling. And even if we look to the last year, we didn’t see any purchases. But it is good to see that Microsoft is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Of course, the future is what matters most. So if you are interested in Microsoft, you should check out this free report on analyst forecasts for the company.

But note: Microsoft may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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