We wouldn't blame ServiceNow, Inc. (NYSE:NOW) shareholders if they were a little worried about the fact that Gina Mastantuono, the Chief Financial Officer recently netted about US$3.5m selling shares at an average price of US$958. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At ServiceNow

Notably, that recent sale by Gina Mastantuono is the biggest insider sale of ServiceNow shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$1,015. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 25% of Gina Mastantuono's stake.

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

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Does ServiceNow Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that ServiceNow insiders own 0.2% of the company, worth about US$371m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At ServiceNow Tell Us?

Insiders haven't bought ServiceNow stock in the last three months, but there was some selling. 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.

Of course ServiceNow may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.