On October 30, 2023, Julie Sweet, Chair and CEO of Accenture PLC (ACN, Financial), sold 9,000 shares of the company. This move is part of a broader trend of insider selling at Accenture PLC over the past year.
Julie Sweet has been with Accenture since 2010, serving in various leadership roles before becoming CEO in 2019. Under her leadership, Accenture has continued to grow its global professional services, providing solutions in strategy, consulting, digital, technology, and operations. Accenture is a Fortune Global 500 company, serving clients in more than 120 countries and generating net revenues of $44.33 billion for the fiscal year 2020.
Over the past year, the insider has sold a total of 44,939 shares and purchased none. This recent sale of 9,000 shares is a continuation of this trend. The insider transaction history for Accenture PLC shows no insider buys over the past year, but there have been 30 insider sells.
On the day of the insider's recent sale, shares of Accenture PLC were trading for $291.41 apiece, giving the stock a market cap of $186.46 billion. The price-earnings ratio is 27.58, which is higher than the industry median of 25.38 and higher than the company’s historical median price-earnings ratio.
Despite the insider selling, Accenture PLC's stock appears to be modestly undervalued. With a price of $291.41 and a GuruFocus Value of $349.52, Accenture PLC has a price-to-GF-Value ratio of 0.83. This suggests that the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on 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, and future estimates of business performance from Morningstar analysts.
While the insider's selling activity may raise some eyebrows, it's important to note that insider selling does not necessarily indicate a lack of confidence in the company. Insiders may sell shares for a variety of reasons, including personal financial planning or portfolio diversification. Therefore, investors should not view insider selling in isolation but consider it as part of a broader investment analysis.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
