Markets: Microsoft CEO Unloads Half Of Shares For $300M
Satya Nadella, the chief executive of tech giant Microsoft (NASDAQ: MSFT), has offloaded a big part of his stake in the company, filings show. He unloaded half of his shares in the company in two days, pocketing nearly $300mn in cash proceeds.
- Nadella made over a dozen trades between 22nd and 23rd November, selling a total of 839,000 shares. They sold for an average price of $342, bringing about $287mn in cash proceeds.
- After the sale, Nadella now owns 831,000 Microsoft shares, worth roughly $270mn at current prices.
- Over the years, Nadella has continually sold blocks of shares amounting to tens of millions but offloading a few hundred million in a go is a rare act for him. Often, insiders unloading large amounts of shares could rub off the wrong way on shareholders, but with Microsoft’s stock at a record high, it’s easy to understand.
- Selling shares at a peak price is sensible for highly-paid executives to diversify their investments and lose out on as little as possible. Microsoft has a current market cap of $2.5 trillion, but there’s no guarantee it’ll remain that high for long.
- Microsoft trades at 40x earnings, comparatively well over fellow tech giants like Meta (formerly Facebook) and Apple. Its stock is up 52% year-to-date.