ServiceNow, Inc. (NYSE:NOW) independent director Jonathan Chadwick (Jonathan Chadwick) sold 41% of his shares

We will not blame ServiceNow, Inc. (NYSE:NOW) Are shareholders worried about independent director Jonathan Chadwick’s recent net sale of approximately $1.6 million in stock at an average price of $430 per share. This is a big problem. It has reduced the size of the shares held by 41%, which is notable but not bad.

Check out our latest analysis of ServiceNow

ServiceNow’s insider trading in the last 12 months

In the past year, we can see that the largest insider sales were conducted by Chief Product Officer Chirantan Desai, with shares worth 7.6 million US dollars at approximately US$361 per share. This means that even if the stock price is lower than the current $436, insiders want to cash out some stocks. Usually, when insiders sell stocks at a price lower than the current price, we think it is frustrating to do so because it shows that insiders are satisfied with the lower valuation. Although insider selling is not a positive signal, we cannot be sure whether this means that insiders believe that the stock has been fully valued, so this is only a weak signal. This transaction only accounts for 50% of Chirantan Desai’s shares.

In short, in the past year, insiders sold more ServiceNow shares than they bought. The chart below shows insider trading (company and individual) in the past year. If you click on the chart, you can view all individual transactions, including stock prices, individual transactions and dates!

For those who like to find Win investment This one free The list of growing companies recently purchased by insiders may be just a ticket.

Does ServiceNow have high internal ownership?

For ordinary shareholders, it is worth checking how many shares the company insiders hold. We generally want to see higher insider ownership. It’s great to see that ServiceNow’s insiders own 0.4% of the company’s shares, valued at approximately US$375 million. I like to see this kind of insider ownership because it increases the opportunity for management to consider the best interests of shareholders.

So, what advice does this data have for ServiceNow insiders?

Insiders recently sold ServiceNow stock but did not buy it. Narrowing the scope will not bring us much comfort in the long run. But because ServiceNow is profitable and growing, we are not worried about it. Although insiders do own a lot of shares in the company (which is good), our analysis of their transactions does not make us confident in the company. Therefore, these insider trading can help us build arguments about stocks, but it is worthwhile to understand the risks faced by the company.Every company has risks and we have found 2 ServiceNow warning signs You should know.

But please note: ServiceNow may not be the best stock.So look at this free List of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are individuals who report their transactions to relevant regulatory agencies. We are currently responsible for open market transactions and private disposal, but not for derivative transactions.

Promotion
If you want to trade ServiceNow, please open an account with the lowest cost* platform trusted by professionals Interactive Brokers. Their clients from more than 200 countries and regions trade stocks, options, futures, foreign exchange, bonds and funds through a comprehensive account worldwide.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, nor does it consider your goals or financial situation. We aim to bring you long-term focused analysis driven by basic data. Please note that our analysis may not consider the latest announcements or qualitative materials from price-sensitive companies. Simply put, Wall Street has no position in any of the stocks mentioned.
^*Interactive Brokers named the lowest-cost broker online review 2020 by StockBrokers.com

Have comments on this article? Concerned about the content? keep in touch Contact us directly. Or, send an email to [email protected].