Recent insider trends for Microsoft Corporation (NASDAQ:MSFT) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of MSFT, the data has a lot to say about how the stock might perform going forward.
Institutions own 75.02% of Microsoft Corporation (MSFT)’s shares. The total value of these holdings, in millions, is $472,196. Among active positions in the latest quarter, 1,047 holders increased their positions by a total of 175.49 million shares, 1,265 holders decreased the positions by a total of 173.55 million shares, and 234 holders held their positions. This works out to a net increase in ownership of 1.94 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 86 holders initiated new positions by a total of 22.39 million shares and 52 holders exited their positions by a total of 2.12 million shares. This nets out to an increase of 20.26 million shares and is a bullish sign for MSFT.
In the last three months, insiders executed a total of 26 trades. 14 of these were buys and 12 were sells. Insider ownership increased by a total of 290665 shares, which suggests that MSFT’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 31 buys and 80 sells, and ownership decreased by a net of 45.82 million shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Microsoft Corporation (NASDAQ:MSFT)’s short interest is 50.55 million shares, or 0.67% of the float. This represents a decrease of -5% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for MSFT. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that MSFT is a Weak buy, which implies that MSFT is expected to outperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Microsoft Corporation (NASDAQ:MSFT) is undervalued.