TLDR
- Microsoft CEO Satya Nadella sold $75.3 million worth of MSFT shares on September 3, 2025
- Sale executed under Rule 10b5-1 trading plan established in March 2025
- Nadella retains $401.73 million worth of Microsoft stock after transaction
- MSFT up 21% year-to-date with $3.7 trillion market cap
- Analysts maintain Strong Buy rating with $625.98 average price target
Microsoft Corporation CEO Satya Nadella executed a major stock sale worth $75.3 million on September 3, 2025. The transaction involved selling 149,205 MSFT shares at prices ranging from $503.00 to $507.56 per share.
The sale occurred through a pre-established Rule 10b5-1 trading plan adopted on March 7, 2025. These plans allow corporate executives to sell shares at predetermined times while avoiding insider trading concerns.
SEC filings reveal the transaction included multiple components. Nadella acquired 308,870 shares at no cost and disposed of an additional 122,362 shares for approximately $62 million at $506.69 per share to cover tax obligations.
Strong Performance Drives Transaction Timing
Microsoft stock has delivered impressive returns in 2025, gaining over 21% year-to-date. The company’s market capitalization recently exceeded $3.7 trillion, positioning it close to joining the exclusive $4 trillion market cap club.
Artificial intelligence demand has fueled Microsoft’s stock rally. The company’s Copilot AI suite and OpenAI partnership have attracted significant investor interest throughout the year.
Despite the substantial sale, Nadella maintains massive ownership in Microsoft. He directly owns 790,852 shares worth approximately $401.73 million at current market prices. He also holds 109,720 shares indirectly.
Recent Business Developments
Microsoft recently announced a partnership with the US General Services Administration. The deal provides productivity and cloud services to federal agencies, including 12 months of free Microsoft 365 Copilot access.
The company launched two new AI models: MAI-Voice-1 and MAI-1-preview. MAI-Voice-1 generates audio content in under one second using a single GPU and is available for testing in Copilot Labs.
Microsoft also restricted cybersecurity alert access for Chinese firms following SharePoint software investigation concerns. This change affects countries requiring vulnerability reporting to governments.
Wall Street Remains Bullish
Analysts maintain optimistic outlooks despite the insider selling activity. Microsoft carries a Strong Buy consensus rating based on 33 Buy recommendations and one Hold rating from Wall Street analysts.
The average price target reaches $625.98, implying 23.2% upside potential from current levels. UBS recently maintained its Buy rating with a $650 price target following Microsoft’s licensing model changes.
Microsoft trades at a 37x price-to-earnings ratio, reflecting strong investor confidence. The valuation appears reasonable given the company’s cloud computing dominance and AI market leadership position.
Nadella’s stock sale represents standard executive compensation activity rather than concerns about Microsoft’s business trajectory. The predetermined nature and his substantial remaining ownership demonstrate continued confidence in the company’s future prospects.
