By selling US $ 13m worth of ServiceNow, Inc. (NYSE: NOW) stocks at an average sell price of US $ 566 over the past year, insiders seem to have maximized their holdings. The company’s market valuation dropped US $ 6.6b after the stock price dropped 5.7% in the past week, but insiders were saved from painful losses.
While insider transactions are not the most important thing when it comes to long -term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest review for ServiceNow
ServiceNow Insider Transactions In the Past Year
In fact, Chirantan Desai’s recent sale was the largest sale of ServiceNow shares made by an insider individual in the past twelve months, according to our records. So clearly an insider saw fit to sell at the almost current price of US $ 547. We generally don’t want to see an insider selling, but when the sale price is lower, it worries us more. Since the sale took place around current prices, it was somewhat cautious but not a major concern.
In total, insiders sold more shares in ServiceNow than they bought, in the past year. The chart below shows insider transactions (by companies and individuals) in the past year. If you want to know who sold, how much, and when, just click the graph below!
I would prefer ServiceNow if I could see some large insider purchases. While we wait, check it out Free list of growing companies with many, recent, insider buying.
Service Insiders Now Sell the Stock
Over the past three months, we’ve seen significant insiders selling on ServiceNow. In total, insiders sold US $ 8.4m worth of shares during that time, and we did not record any purchases. Because of this it’s hard to argue that all insiders think the shares are a bargain.
Insider Ownership
Looking at the total insider shareholding in a company can help inform your perspective on whether they are properly aligned with common shareholders. Typically, the higher the insider ownership, the more likely it is that insiders will be incentivized to build the company for the long term. ServiceNow insiders own 0.3% of the company, which is currently worth approximately US $ 285m based on recent share price. I would like to see this level of insider ownership, as it increases the chances of management thinking in the best interests of shareholders.
So What Do ServiceNow Insider Transactions Say?
Insiders have not bought ServiceNow stock in the past three months, but there are a few sellers. And our long -term review of insider transactions also did not bring confidence. But it’s nice to see that ServiceNow is growing revenue. The company boasts high insider ownership, but we’re a bit hesitant, given the history of part sales. While we want to know what is going on with ownership and insider transactions, we make sure to also consider what risks a stock faces before making any investment decision. You are interested to know, that we have found 1 warning for ServiceNow and we suggest you take a look.
If you’d rather look at another company – one with higher financial potential – then don’t miss it. Free list of interesting companies, with HIGH returns on equity and low debt.
For purposes of this article, insiders are the individuals who report their transactions to the relevant regulatory body. We currently consider open market transactions and private dispositions, but not derivative transactions.
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