Insider Selling

Microsoft’s CTO Joins CEO Nadella in Form 144 Streak After Lying Dormant

Microsoft CTO, Kevin Scott, addresses an audience regarding the importance of Artificial Intelligence (AI) learning with Microsoft's logo in the background

Appointed on January 24, 2017, Kevin James Scott is the CTO and Executive Vice President at Microsoft Corp. (MSFT: US). Previously, Scott served as the Senior Vice President at LinkedIn, prior to the latter’s acquisition by Microsoft. A strong advocate of Artificial Intelligence (AI) technologies, he and his team have been working on projects focused on developing AI platforms and tools.

While he is renowned for his role in the company’s operations, in the business of stock trading, Scott’s name is quite vague. That is until recently when his first-ever trade of $MSFT came into view.

Plans To Sell Unseen Shares

On February 28, 2022, Scott filed a Form 144 selling his hoard of Microsoft’s shares. The planned sale is of 40,000 shares, at a price of $298.79 per share. In total, this stock trading was worth a bulky $11.95 million, and his first in nearly seven years.

This trade comes as an eye-popping surprise considering Scott has no reported holdings of Microsoft shares. Prior to Microsoft’s acquisition of LinkedIn, he owned the latter’s stocks which he frequently sold until his last reported SEC filing on November 17, 2015.

This Form 4 filing stated changes in beneficial ownership. He sold a total of 3,136 shares, valued at a rough total of $758K.

Also joining Scott was Microsoft’s CEO himself - Satya Nadella. Nadella continued his stock selling from Nov’21 with another Form 144 on March 1, 2022. This filing was for 7,931 shares at a total amount of $2.34 M.

Microsoft Picking Up Arms

In the ongoing conflict between Russia and Ukraine, Microsoft was reported to play a pivotal role in curbing cyberattacks against Ukraine. On February 28, 2022, Microsoft published a detailed account, stating that the company’s intelligence picked up cyberattacks and malware directed towards Ukraine.

Microsoft’s stock price has been declining considerably since the start of 2022. $MSFT commenced the year at a value of $334.75 per share. The lowest price of $MSFT in 2022 was on February 23, when it hit $280.27; a fall of almost 19.44%. But in the past five days, the stock has rebounded like the rest of the S&P500. Presently, it is valued at $300.19; a rise of 10.16% since February 24, 2022, when Russian troops first marched into Ukraine.

Microsoft is actively playing in the ongoing war, but the stock market could be headed for more roller coasters. Scott’s stock selling may be clever, considering the stock remains bearish in the near future.

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