Microsoft’s President Sold $20 Million of Company Stock During Post-Earnings Dip

Microsoft’s (MSFT) Vice Chair and President Brad Smith sold $20 million worth of company stock as the share price fell after the technology giant made public its third-quarter financial results.

MSFT stock has slid 8% lower since the company delivered its third-quarter print on Oct. 29. Smith wasted no time unloading shares he owns in Microsoft during the post-earnings dip. A filing with the U.S. Securities and Exchange Commission (SEC) shows the company’s president sold 38,500 shares of Microsoft stock in two separate transactions on Nov. 3.

The first sale was for 30,411 shares at an average price of $518.49 each, followed by a second sale of 8,089 shares at $519.21 apiece. The sales netted Smith proceeds of $19.97 million. Following the recent sales, Smith still owns 461,596 shares of Microsoft stock worth nearly $240 million based on the current price.

AI Concerns

Smith’s sale of MSFT stock also comes as investors grow increasingly concerned about a bubble forming in artificial intelligence (AI) companies such as Microsoft, and worries about the capital expenditures that mega-cap technology companies are spending on their AI buildouts. Microsoft’s latest earnings report showed that its capex reached $34.9 billion in the third quarter, exceeding Wall Street forecasts.

For his part, Smith is an outspoken advocate for AI, having called it the “next great general-purpose technology,” and likening it to the invention of electricity. In a 2024 blog post on Microsoft’s website, Smith wrote that “rapid technological change” will be inevitable in coming years.

Is MSFT Stock a Buy?

Microsoft’s stock has a consensus Strong Buy rating among 33 Wall Street analysts. That rating is based on 33 Buy recommendations issued in the last three months. The average price target on MSFT stock of $636.36 implies 27.91% upside from current levels.

Read more analyst ratings on MSFT stock