Microsoft CEO Sells 30% of his Shares but the Share price doesn't move

[JayDee3000]

Mr. Rigged, I think you need to consider the scale of this before trying to draw conclusions.

1. The CEO's pay is primarily in stock and stock options.
2. The CEO sold 30% of shares currently owned. That came to 328,000 shares. You might think that a sale of this size would create a market ripple. In fact, there are currently over 7.6 Billion shares of Microsoft, so 328,000 of them represents less than 1/2 of 1% of all current shares of Microsoft.
3. For the last 50 days, the average daily trading volume for Microsoft stock has been over 26 million shares.
4. The CEO also has 2.28 million in underlying shares, which can be vested at will when the right conditions are met. Doing anything to disrupt the current prices of Microsoft would make those underlying shares worth less.

Looks to me like the CEO wanted a new wing on his mansion, so sold some stock. This is a very common thing.

On the ball here

 

[Pharaoh]

On the flipside, if you see multiple executives of a company starting to sell off large percentages of their shares (both currently owned and via options they hold) in a short time period, that can be a true warning flag. Happily, sales like this from such people are reported, so it's not easy for them to do anything like this under the radar.

 

[Manalmeena]

I remember this moment very well.
And I remember that it caused a lot of excitement in the market, it's nice to look into the past and remember something significant.

 

[Joshevans--]

cnbc.com/2018/08/10/microsoft-ceo-satya-nadella-sells-30-percent-of-common-stock.html

haha. This tells you that they don't control the shareprice either.

Your name is hilarious. Especially with all that is going on with GameStop lolol