This Insider Has Just Sold Shares In Microsoft

Some Microsoft Corporation (NASDAQ:MSFT) shareholders may be a little concerned to see that the Executive VP & CEO of Commercial Business, Judson Althoff, recently sold a substantial US$7.1m worth of stock at a price of US$461 per share. That's a big disposal, and it decreased their holding size by 21%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Microsoft

In the last twelve months, the biggest single sale by an insider was when the President & Vice Chairman, Bradford Smith, sold US$20m worth of shares at a price of US$519 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$417). So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of Microsoft shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Microsoft

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Insider Ownership Of Microsoft

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Microsoft insiders own about US$1.0b worth of shares (which is 0.03% of the company). 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. Zooming out, the longer term picture doesn't give us much comfort. But since Microsoft is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Microsoft that deserve your attention before buying any shares.

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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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.