Some Microsoft Corporation (NASDAQ:MSFT) shareholders may be a little concerned to see that the Executive VP and President of Microsoft Global Sales, Jean-Philippe Courtois, recently sold a whopping US$3.2m worth of stock at a price of US$180 per share. However, that sale only accounted for 2.2% of their holding, so arguably it doesn’t say much about their conviction.
View our latest analysis for Microsoft
Microsoft Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President & Chief Legal Officer, Bradford Smith, sold US$25m worth of shares at a price of US$130 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$184. 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. This single sale was just 23% of Bradford Smith’s stake.
Microsoft insiders didn’t buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Microsoft Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Microsoft insiders own 1.4% of the company, currently worth about US$20b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Microsoft Insiders?
Insiders sold Microsoft shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. But it is good to see that Microsoft is growing earnings. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
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. Thank you for reading.
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