Have ServiceNow Insiders Been Selling Stock?

Some ServiceNow, Inc. (NYSE:NOW) shareholders may be a little concerned to see that the Independent Director, Jeffrey Miller, recently sold a substantial US$2.4m worth of stock at a price of US$1,031 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.3%.

Check out our latest analysis for ServiceNow

ServiceNow Insider Transactions Over The Last Year

The President & CFO, Gina Mastantuono, made the biggest insider sale in the last 12 months. That single transaction was for US$3.5m worth of shares at a price of US$958 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$1,009. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 25% of Gina Mastantuono's holding.

In the last year ServiceNow insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of ServiceNow

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. ServiceNow insiders own 0.2% of the company, currently worth about US$337m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The ServiceNow Insider Transactions Indicate?

An insider sold ServiceNow shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ServiceNow. Every company has risks, and we've spotted 1 warning sign for ServiceNow you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.