With ServiceNow, Inc.'s (NYSE:NOW)) price down 5.7% this week, insiders might find some solace having sold US$13m worth of shares earlier this year.

By selling US$13m worth of ServiceNow, Inc. (NYSE:NOW) stock at an average sell price of US$566 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by US$6.6b after the stock price dropped 5.7% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for ServiceNow

ServiceNow Insider Transactions Over The Last Year

In fact, the recent sale by Chirantan Desai was the biggest sale of ServiceNow shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$547. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

All up, insiders sold more shares in ServiceNow than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like ServiceNow better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

ServiceNow Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at ServiceNow. In total, insiders sold US$8.4m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ServiceNow insiders own 0.3% of the company, currently worth about US$285m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The ServiceNow Insider Transactions Indicate?

Insiders haven't bought ServiceNow stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that ServiceNow is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for ServiceNow and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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, but not derivative transactions.

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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.