On October 31, 2023, Paul Smith, the Chief Commercial Officer of ServiceNow Inc (NOW, Financial), sold 859 shares of the company. This move is part of a broader trend of insider selling at ServiceNow Inc, which we will explore in this article.
ServiceNow Inc is a leading provider of cloud-based services that automate enterprise IT operations. The company's service includes a suite of applications built on its proprietary platform that automates workflow and provides integration between related business processes. It's primarily involved in the provision of software as a service (SaaS).
Paul Smith is a seasoned executive with a wealth of experience in the tech industry. As the Chief Commercial Officer of ServiceNow Inc, he plays a crucial role in the company's sales and marketing strategies. His decision to sell shares in the company is therefore noteworthy.
Over the past year, the insider has sold a total of 11,939 shares and has not purchased any shares. This trend is mirrored in the broader insider transaction history for ServiceNow Inc, which shows zero insider buys and 76 insider sells over the past year.
On the day of the insider's recent sell, shares of ServiceNow Inc were trading for $582.63 apiece, giving the stock a market cap of $122.92 billion. The price-earnings ratio is 77.90, which is higher than the industry median of 25.59 but lower than the company’s historical median price-earnings ratio.
According to GuruFocus Value, with a price of $582.63 and a GuruFocus Value of $688.15, ServiceNow Inc has a price-to-GF-Value ratio of 0.85. This suggests that the stock is modestly undervalued.
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.
The insider's decision to sell shares could be influenced by a variety of factors. It's important to note that insider selling does not necessarily indicate a lack of confidence in the company. Executives sell shares for many reasons, including personal financial planning and diversification. However, the trend of insider selling at ServiceNow Inc is worth monitoring for investors.
Despite the insider selling, the stock's modest undervaluation according to the GF Value could present an opportunity for investors. As always, potential investors should conduct their own research and consider multiple factors before making investment decisions.
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.
