On May 23, 2023, President and CEO Girish Saligram sold 50,750 shares of Weatherford International PLC (WFRD, Financial), an oilfield services company. This move comes amidst a year of insider selling activity for the company, with no insider buys recorded over the same period.
Who is Girish Saligram?
Girish Saligram is the President and CEO of Weatherford International PLC. He joined the company in October 2020, bringing with him over 20 years of experience in the oil and gas industry. Prior to joining Weatherford, Saligram held various leadership positions at Exterran Corporation, including Chief Operating Officer. His extensive experience and knowledge in the industry have been instrumental in driving Weatherford's growth and success.
Weatherford International PLC Business Description
Weatherford International PLC is a multinational oilfield services company that provides innovative solutions, technology, and services to the oil and gas industry. The company operates in over 80 countries and has a network of approximately 650 locations, including manufacturing, service, research and development, and training facilities. Weatherford's primary focus is on delivering efficient and effective solutions to its clients, helping them maximize the value of their oil and gas assets.
Insider Trading Analysis
Over the past year, Girish Saligram has sold a total of 50,750 shares and purchased 0 shares. This recent sale represents a significant portion of his holdings in the company. The insider transaction history for Weatherford International PLC shows that there have been 0 insider buys in total over the past year, while there have been 4 insider sells during the same timeframe. This trend could indicate that insiders are less confident in the company's future prospects or that they believe the stock is overvalued.
Stock Price and Valuation
On the day of Girish Saligram's recent sale, shares of Weatherford International PLC were trading at $59.34 apiece, giving the stock a market cap of $4,283.5 million. The price-earnings ratio is 24.46, which is higher than the industry median of 7.64 and lower than the company's historical median price-earnings ratio.
With a price of $59.34 and a GuruFocus Value of $26.94, Weatherford International PLC has a price-to-GF-Value ratio of 2.2. This means the stock is significantly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Investors should consider the insider selling activity and the stock's valuation before making any investment decisions. While Girish Saligram's sale of shares may raise concerns, it is essential to conduct thorough research and analysis to determine the potential impact on Weatherford International PLC's future performance.
