On May 23, 2023, President and CEO Girish Saligram sold 50,750 shares of Weatherford International PLC (WFRD, Financial), a leading multinational oilfield service company. This insider sell comes amidst a year of no insider purchases and four insider sells for the company. In this article, we will delve into the details of the transaction, the background of Girish Saligram, and the business description of Weatherford International PLC. We will also analyze the relationship between insider buy/sell transactions and the stock price.
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. He has a strong background in operations, business development, and strategy, making him a valuable asset to Weatherford International PLC.
Weatherford International PLC Business Description
Weatherford International PLC is a multinational oilfield service 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. The insider transaction history for Weatherford International PLC shows that there have been 0 insider buys in total over the past year. Meanwhile, there have been 4 insider sells over the same timeframe. This trend may indicate that insiders believe the stock is overvalued or that they are taking advantage of a high stock price to cash in on their holdings.
Stock Price and Valuation
On the day of Girish Saligram's recent sell, shares of Weatherford International PLC were trading for $59.34 apiece, giving the stock a market cap of $4,256.836 million. The price-earnings ratio is 24.31, which is higher than the industry median of 7.55 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.
In conclusion, the recent insider sell by Weatherford International PLC's President and CEO Girish Saligram may raise concerns for investors. The stock's valuation, as indicated by its price-to-GF-Value ratio, suggests that it is significantly overvalued. Investors should keep a close eye on the company's performance and insider transactions to make informed decisions about their investments in Weatherford International PLC.
