Microsoft’s (MSFT) vice chair and president, Bradford L. Smith, sold $32.7 million worth of MSFT shares on May 2, likely cashing in on post-earnings gains. After its Q1 report on April 30, Microsoft stock closed 10.1% higher on May 2.
According to the SEC filing, Smith divested 75,000 shares of MSFT at prices ranging between $434.77 and $436.71 per share. Also, an automatic sell order of 6,000 shares was executed at $433.17 per share.
Following the latest transaction, the insider owns 471,036 shares, which include about 37 shares acquired under the Microsoft Employee Stock Purchase Plan, for a total value of over $204 million.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Analysts Rush to Assign MSFT Stock a Buy Rating
Following the tech giant’s Q1 earnings release, nearly 28 analysts have rated Microsoft stock a Buy. Analyst Andy Yu, CFA, from DBS is impressed by MSFT’s strong market position and growth potential.
Microsoft leads in productivity software and benefits from cloud expansion. Also, the analyst sees the company’s Azure platform as a major growth driver. This is expected to boost revenue with a strong CAGR, while AI investments and cybersecurity leadership strengthen long-term prospects.
Further, the Activision deal adds to its PC segment, despite short-term revenue shifts. Yu believes these factors make Microsoft stock a solid Buy despite economic risks.
Is MSFT a Good Stock to Buy?
Turning to Wall Street, MSFT stock has a Strong Buy consensus rating based on 30 Buys and five Holds assigned in the last three months. At $506.31, the average Microsoft stock price target implies a 16.85% upside potential.
