Microsoft Corporation (NASDAQ:MSFT) insiders sold $30 million worth of stock, signaling impending weakness.


A lot in the past year Microsoft Corporation (NASDAQ:MSFT) insiders sold a substantial stake in the company, which may have caught the attention of shareholders. When analyzing insider trading, knowing whether insiders are buying is usually more valuable than knowing whether they are selling, as the latter sends an ambiguous message. However, when several insiders sell shares in a given time period, shareholders should be notified as this could potentially be a red flag.

While insider trading isn’t the most important thing when it comes to long-term investing, logic suggests that you should pay close attention to whether insiders are buying or selling stocks.

Check out our latest analysis for Microsoft

Microsoft Insider transactions in the past year

In the past 12 months, the largest insider sale occurred when Amy Hood, Executive VP and CFO, sold $20 million worth of stock at a price of $259 per share. This means that an insider sold the stock at the current price of US$248. While insider selling is negative, if the stock is sold at a lower price, it’s more negative for us. In this case, the big sell-off happened around the current price, so it’s not too bad (but it’s still not positive).

Overall, Microsoft Insiders bought more than last year. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the chart below you can see the exact details of each insider trade!

insider trading volume

If I could see a big insider buy, I’d prefer Microsoft more. Check it out while we wait free Remarkable, recent, growing list of companies with insider buyouts.

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Microsoft insiders sell shares

There has been a lot of insider selling at Microsoft over the past three months. In total, insiders dumped $21 million worth of stocks during that time, and we have not recorded any purchases. This could suggest that some insiders think the stock isn’t cheap.

within property

I like seeing how many shares insiders own in a company, which helps me gauge how well they line up with insiders. I think it’s a good sign if insiders own a significant amount of stock in the company. Microsoft insiders own 0.04% of the company, which is currently worth $799 million based on the most recent share price. Most shareholders would welcome such insider ownership, as it shows that management’s incentives align well with those of other shareholders.

So what does this data suggest about Microsoft insiders?

Insiders haven’t bought any Microsoft stock in the last three months, but some have been sold. And our long-term analysis of insider trading was also unconvincing. But since Microsoft is profitable and growing, we’re not too concerned about that. The company boasts a high degree of insider ownership, but we’re a little hesitant given its history of stock sales. While we like to know what’s going on with insider ownership and trading, we also make sure we understand the risks the stocks face before making any investment decisions. While conducting our analysis, we found that Microsoft has 1 warning sign And it would be unwise to ignore it.

If you’d rather check out another company – possibly one with better financials – don’t miss this one. free List of interesting companies with high return on equity and low debt.

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For the purposes of this article, insiders are persons who report their transactions to the relevant supervisory authority. We currently account for open market transactions and private placements, but not derivatives transactions.

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This Simply Wall St article is general in nature. We only comment based on historical data and analyst forecasts using an unbiased methodology and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or your financial situation. We strive to provide you with long-term focused analytics driven by fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or quality material. Simply Wall Street has no position in any of the listed stocks.

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