Insiders At Microsoft Sold US$103m In Stock, Alluding To Potential Weakness

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Insiders At

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Sold US$103m In Stock, Alluding To Potential Weakness

The fact that multiple

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Corporation (NASDAQ:MSFT) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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In the last twelve months, the biggest single ***** by an insider was when the President & Vice Chairman, Bradford Smith, sold US$20m worth of shares at a price of US$412 per share. So we know that an insider sold shares at around the present share price of US$410. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big ***** took place at around the current price, so it’s not too bad (but it’s still not a positive).

Insiders in

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didn’t buy any shares in the last year. 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!

insider-trading-volume

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The last quarter saw substantial insider selling of

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shares. Specifically, insiders ditched US$46m worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that

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insiders own 0.03% of the company, worth about US$998m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

Insiders sold

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shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. But since

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is profitable and growing, we’re not too worried by this. 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. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing

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. You’d be interested to know, that we found

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and we suggest you have a look.

Story Continues

Of course

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may not be the best stock to buy. So you may wish to see this free

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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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with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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#Insiders #

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#Sold #US103m #Stock #Alluding #Potential #Weakness

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