On September 18, 2023, Director Matthew Wallach sold 5,000 shares of Veeva Systems Inc (VEEV, Financial). This move comes as part of a series of transactions by the insider over the past year, during which Wallach has sold a total of 55,000 shares and made no purchases.
Matthew Wallach is a key figure at Veeva Systems Inc, a cloud-computing company focused on pharmaceutical and life sciences industry applications. Wallach's role as a director places him in a strategic position within the company, making his trading activities particularly noteworthy for investors and market watchers.
Veeva Systems Inc provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, and internationally. The company offers Veeva Commercial Cloud, a suite of multichannel customer relationship management applications, data solutions, and master data management solutions. Its services also include Veeva Vault, a cloud-based enterprise content and data management applications for managing commercial functions, including medical, sales, and marketing.
The insider's recent sell-off could be seen as a bearish signal, especially considering the overall insider trading trend at Veeva Systems Inc. Over the past year, there have been 27 insider sells and no insider buys. This trend is illustrated in the following chart:
However, it's important to consider the broader context. On the day of the insider's recent sell, shares of Veeva Systems Inc were trading at $209.07, giving the company a market cap of $33.66 billion. The price-earnings ratio stood at 63.30, higher than the industry median of 26.74 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Veeva Systems Inc is modestly undervalued. The stock's price-to-GF-Value ratio is 0.79, with a GF Value of $264.85 against the current price of $209.07.
In conclusion, while the insider's recent sell-off and the overall insider trading trend at Veeva Systems Inc may raise some eyebrows, the company's valuation suggests that the stock is still a good buy. As always, investors should conduct their own research and consider their investment goals before making a decision.
