Some Microsoft Corporation (NASDAQ:MSFT) shareholders may be a little concerned to see that the Executive VP & CFO, Amy Hood, recently sold a substantial US$20m worth of stock at a price of US$259 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

Check out our latest analysis for Microsoft

The Last 12 Months Of Insider Transactions At Microsoft

The Chairman & CEO, Satya Nadella, made the biggest insider sale in the last 12 months. That single transaction was for US$285m worth of shares at a price of US$349 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$258. So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in Microsoft than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.

Does Microsoft Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Microsoft insiders own about US$858m worth of shares (which is 0.04% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Microsoft Tell Us?

An insider 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. 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. Of course, the future is what matters most. So if you are interested in Microsoft, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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, but not derivative transactions.

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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.