On May 30, 2023, Gina Mastantuono, the Chief Financial Officer of ServiceNow Inc (NYSE:NOW), sold 2,147 shares of the company's stock. This recent transaction is part of a series of insider sales by Mastantuono over the past year, during which she has sold a total of 10,687 shares and purchased none.
Who is Gina Mastantuono?
Gina Mastantuono is the Chief Financial Officer of ServiceNow Inc, a leading provider of cloud-based platforms and solutions that help organizations automate and streamline their IT operations. She joined the company in January 2020 and has been responsible for overseeing the company's financial strategy, planning, and operations. Prior to joining ServiceNow, Mastantuono held various leadership positions in finance at Ingram Micro, Revlon, and InterActiveCorp.
ServiceNow Inc's Business Description
ServiceNow Inc is a software-as-a-service (SaaS) provider that specializes in IT service management (ITSM), IT operations management (ITOM), and IT business management (ITBM) solutions. The company's platform enables organizations to automate and streamline their IT operations, improve service delivery, and drive innovation. ServiceNow's customers include enterprises across various industries, such as financial services, healthcare, manufacturing, and telecommunications. The company's solutions are designed to help organizations increase productivity, reduce costs, and enhance the overall user experience.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, there have been no insider buys for ServiceNow Inc, while there have been 67 insider sells. This trend suggests that insiders may be taking advantage of the stock's strong performance to cash in on their holdings. However, it is essential to consider the context of these transactions and the overall market conditions before drawing any conclusions.
On the day of Gina Mastantuono's recent sale, ServiceNow Inc's shares were trading at $550 apiece, giving the stock a market cap of $110,622.726 million. The price-earnings ratio is 277.02, which is higher than the industry median of 26.99 and lower than the company's historical median price-earnings ratio. This indicates that the stock may be overvalued compared to its peers and its historical trading levels.
However, when considering the GuruFocus Value of $807.25, ServiceNow Inc has a price-to-GF-Value ratio of 0.68, suggesting that the stock is significantly undervalued. The GF Value is an intrinsic value estimate developed by GuruFocus based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
It is worth noting that the stock's price has been on an upward trajectory over the past year, which may have influenced the decision of insiders like Mastantuono to sell their shares. While the stock may appear overvalued based on its price-earnings ratio, the price-to-GF-Value ratio suggests that there may still be room for growth.
Conclusion
Gina Mastantuono's recent sale of 2,147 shares of ServiceNow Inc is part of a broader trend of insider selling for the company over the past year. While this may raise concerns for some investors, it is essential to consider the stock's valuation and overall market conditions before making any investment decisions. Based on the price-to-GF-Value ratio, ServiceNow Inc appears to be significantly undervalued, suggesting that there may still be potential for growth despite the recent insider selling activity.
