Last year, Microsoft Corp. announced that Mason Morfit, president of ValueAct Capital, has been appointed to the company’s board of directors and its audit committee. Also they signed a cooperation agreement with ValueAct Capital which owns approximately 0.8 percent of the outstanding shares of Microsoft common stock and is one of the company’s largest shareholders.
Yesterday, Mason Morfit has bought over 1 million shares of Microsoft for over $43 million. On the other side, Bill Gates has sold about 1 million shares of Microsoft.
This action by Morfit has to be productive to the bull case, albeit what has to seem like a much longer-term bull case now in light of the recent earnings disappointment and further conservative guidance from the tech giant.
Morfit putting ~$43 million on the line at prices ranging from $40-42 to me would show this to be one very powerful man’s estimation of fair value prior to FQ2 results. I would expect this news to open the door for other large buyers to step in and hold the line knowing that another large player at the table is betting at the current price.