Microsoft insiders sold nearly $10 million worth of MSFT stock in June, according to SEC filings, as valuation debates intensify and the company's AI investments continue to weigh on gross margins. The selling, which represents about two-thirds of the year's insider sales, comes as shares trade near $398, up $7.20 on the day.
The biggest sellers were Judson Althoff, Microsoft's Commercial chief, and Takeshi Numoto, the company's EVP and CMO. Althoff sold 15,500 shares on June 1 at a weighted average of $460.99, leaving him with 110,477 shares. Numoto sold 2,500 shares at $412.45 on June 8, followed by another 4,500 shares at $402.84 two days later.
According to Finbold, the three sales totaled roughly $10 million, with June accounting for 66% of all insider selling by dollar value this year. Data from Quiver Quantitative shows that in the past six months, MSFT insiders have executed five open-market trades: four sales and one purchase. The filings do not specify reasons for the selling.
The stock's valuation is under increased scrutiny after shares pulled back from recent highs. GuruFocus data shows a wide disparity in intrinsic value estimates depending on the model used. The earnings-based DCF model values MSFT at $518, well above the current price of $390.74, while the free cash flow DCF model puts the value at just $207. That spread highlights how much Microsoft's worth can vary based on investor assumptions.
Microsoft reported strong fiscal third-quarter results, with revenue of $82.9 billion, up 18% year-over-year. Operating income rose 20% to $38.4 billion, and diluted EPS came in at $4.27. Cloud revenue hit $54.5 billion, up 29%, with Azure and other cloud services growing 40%.
AI remains a key focus for investors. CEO Satya Nadella said on the April earnings call that the company's AI business had surpassed an annual revenue run rate of $37 billion, up 123% year-over-year. However, CFO Amy Hood noted that gross margins declined due to "continued investment in AI infrastructure and growing AI product usage."
Microsoft shares have been volatile as the market weighs the company's strong cloud and AI growth against margin pressures and insider selling. The stock's market cap stands near $2.96 trillion.
