Key Points
- Microsoft CEO Judson Althoff sold 15,500 shares on June 1 for about $7.15 million at an average price of $460.99 per share. After the transaction, he still held 110,477 shares, and his ownership fell by 12.3%.
- Microsoft shares were down 4.2% in the session discussed, opening at $441.31. The company still carries a $3.28 trillion market cap, and its stock has traded between a 1-year low of $356.28 and a high of $555.45.
- Despite the insider sale, Microsoft’s fundamentals remain strong, with its latest quarter beating earnings and revenue expectations. The company also recently announced a quarterly dividend of $0.91 per share, payable on June 11.
Microsoft Corporation (NASDAQ:MSFT - Get Free Report) CEO Judson Althoff sold 15,500 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the sale, the chief executive officer owned 110,477 shares of the company's stock, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link.
Microsoft Trading Down 4.2%
Shares of Microsoft stock opened at $441.31 on Wednesday. The stock has a market cap of $3.28 trillion, a P/E ratio of 26.27, a P/E/G ratio of 1.66 and a beta of 1.11. The stock's 50 day simple moving average is $403.52 and its 200-day simple moving average is $433.78. Microsoft Corporation has a 1-year low of $356.28 and a 1-year high of $555.45. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27.
Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.06 by $0.21. The business had revenue of $82.89 billion for the quarter, compared to analysts' expectations of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business's revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.46 EPS. Analysts predict that Microsoft Corporation will post 16.76 EPS for the current fiscal year.
Microsoft Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be issued a $0.91 dividend. The ex-dividend date is Thursday, May 21st. This represents a $3.64 dividend on an annualized basis and a yield of 0.8%. Microsoft's dividend payout ratio is currently 21.67%.
Key Stories Impacting Microsoft
Here are the key news stories impacting Microsoft this week:
- Positive Sentiment: Microsoft unveiled new in-house AI models at Build, including MAI-Code-1 and MAI-Thinking-1, signaling it is reducing reliance on OpenAI and Anthropic while lowering costs for developers.
- Positive Sentiment: The company introduced Microsoft Scout, an always-on personal agent for Microsoft 365, and other agentic AI tools, reinforcing the view that Microsoft is expanding its AI monetization opportunities.
- Positive Sentiment: Microsoft and Nvidia deepened their partnership on AI PCs and agentic computing across Windows and Azure, which investors viewed as a major catalyst for the Windows ecosystem and future hardware/software demand.
- Positive Sentiment: Microsoft also highlighted its quantum computing progress with the Majorana 2 chip, adding to the company’s long-term innovation narrative.
- Positive Sentiment: Multiple analysts and media reports remained constructive, with commentary pointing to strong Azure upside, AI demand, and a favorable long-term valuation case for MSFT.
- Neutral Sentiment: Build 2026 generated broad attention across the market, but some reports noted Microsoft teased a Copilot “Super App” without fully unveiling it, which may have tempered expectations.
- Negative Sentiment: Judson Althoff sold 15,500 Microsoft shares in an SEC-disclosed transaction, which can create short-term investor concern even though the sale was relatively modest versus his remaining holdings.
- Negative Sentiment: Some coverage cited profit-taking and concerns about capital intensity, margin pressure, and a possible AI policy overhang, helping explain the pullback despite the positive product news.
Hedge Funds Weigh In On Microsoft
Several large investors have recently bought and sold shares of the stock. Longfellow Investment Management Co. LLC grew its holdings in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after buying an additional 20 shares during the last quarter. Bernzott Capital Advisors purchased a new position in shares of Microsoft during the fourth quarter worth about $34,000. Timmons Wealth Management LLC purchased a new position in shares of Microsoft during the fourth quarter worth about $36,000. Fairway Wealth LLC grew its holdings in shares of Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after buying an additional 66 shares during the last quarter. Finally, LSV Asset Management purchased a new position in shares of Microsoft during the fourth quarter worth about $44,000. Institutional investors and hedge funds own 71.13% of the company's stock.
Wall Street Analysts Forecast Growth
MSFT has been the topic of a number of research analyst reports. Wells Fargo & Company boosted their target price on Microsoft from $625.00 to $650.00 and gave the company an "overweight" rating in a research report on Monday. Dbs Bank cut their target price on Microsoft from $678.00 to $573.00 in a research report on Thursday, May 7th. Benchmark reaffirmed a "buy" rating and set a $525.00 price objective (up from $450.00) on shares of Microsoft in a research report on Tuesday, April 28th. Cantor Fitzgerald cut their price objective on Microsoft to $502.00 and set an "overweight" rating on the stock in a research report on Monday, April 27th. Finally, Citigroup assumed coverage on Microsoft in a research report on Monday. They set a "market outperform" rating on the stock. Forty analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $561.20.
Check Out Our Latest Analysis on Microsoft
Microsoft Company Profile
(
Get Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
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