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Many Microsoft Corporation (NASDAQ:MSFT) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Microsoft
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$412 per share. So we know that an insider sold shares at around the present share price of US$399. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year Microsoft insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Microsoft better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Microsoft Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Microsoft shares. Specifically, insiders ditched US$33m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Microsoft Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Microsoft insiders own 0.03% of the company, worth about US$1.0b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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 at the last year, we didn't see any purchases. On the plus side, Microsoft makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Microsoft has 1 warning sign we think you should be aware of.