TLDR
- Microsoft CEO Satya Nadella sold $75.3 million worth of MSFT stock on September 3, 2025
- The sale included 149,205 shares at prices ranging from $503 to $507.56 per share
- Transaction was made under a Rule 10b5-1 trading plan adopted in March 2025
- Nadella still owns $401.73 million worth of Microsoft stock after the sale
- MSFT has gained over 21% this year with market cap exceeding $3.7 trillion
Microsoft CEO Satya Nadella executed a major stock sale on September 3, 2025, disposing of $75.3 million worth of company shares. The transaction involved 149,205 shares sold at weighted average prices between $503.0039 and $507.558 per share.
The sale occurred through multiple transactions as part of a Rule 10b5-1 trading plan that Nadella adopted on March 7, 2025. These plans allow company executives to sell shares at predetermined times to avoid insider trading concerns.
According to SEC Form 4 filings, the transactions were more complex than a simple stock sale. Nadella also acquired 308,870 shares of common stock at no cost during the same period. He disposed of an additional 122,362 shares for approximately $62 million at $506.69 per share.
The second disposition was marked with an “F” designation on the filing. This indicates the shares were sold to cover exercise prices or tax liabilities related to stock compensation.
Despite the large sale, Nadella maintains substantial ownership in Microsoft. He directly owns 790,852 shares of Microsoft common stock following these transactions. He also holds 109,720 shares indirectly through other arrangements.
Strong Stock Performance Backdrop
Microsoft’s stock has delivered strong returns this year, climbing over 21% since January. The company’s market capitalization recently surpassed $3.7 trillion, putting it within striking distance of the exclusive $4 trillion club.
The stock’s momentum has been driven largely by investor enthusiasm for Microsoft’s artificial intelligence products. The company has positioned itself as a leader in enterprise AI through its Copilot suite and partnerships with OpenAI.
At current prices around $508, Nadella’s remaining direct holdings are worth approximately $401.73 million. This represents a massive personal stake that keeps the CEO aligned with shareholder interests.
Recent Corporate Developments
Microsoft has announced several business developments in recent weeks. The company partnered with the US General Services Administration to provide productivity and cloud services to federal agencies.
This government contract includes offering Microsoft 365 Copilot at no cost for up to 12 months. The deal is expected to generate $3 billion in cost savings as part of the GSA’s OneGov strategy.
The company also introduced two new AI models called MAI-Voice-1 and MAI-1-preview. MAI-Voice-1 can generate a minute of audio in under a second using a single GPU and is now available for testing.
Microsoft has made changes to its cybersecurity practices following recent investigations. The company restricted access to security alerts for Chinese firms after concerns about potential information leaks through its SharePoint software.
Analyst Outlook Remains Positive
Wall Street analysts continue to view Microsoft favorably despite the insider selling activity. The stock carries a Strong Buy consensus rating based on 33 Buy recommendations and one Hold rating.
The average analyst price target sits at $625.98, implying 23.2% upside potential from current trading levels. UBS recently reiterated its Buy rating with a $650 price target following Microsoft’s pricing and licensing changes.
Microsoft trades at a price-to-earnings ratio of 37, reflecting strong investor confidence in the company’s growth prospects. The valuation appears reasonable given the company’s dominant position in cloud computing and emerging AI markets.
Nadella’s stock sale represents normal executive compensation activity rather than a signal about Microsoft’s business prospects. The pre-planned nature of the transaction and his continued large ownership stake suggest confidence in the company’s direction.
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