On September 5, 2023, Thomas Schwenger, President and COO of Veeva Systems Inc (VEEV, Financial), sold 1,238 shares of the company. This move is part of a series of insider transactions that have taken place over the past year.
Thomas Schwenger is a key figure at Veeva Systems Inc, a cloud-computing company focused on pharmaceutical and life sciences industry applications. Veeva provides an integrated suite of applications that help pharmaceutical and biotechnology companies increase operational efficiency, reduce costs, and maintain compliance with regulatory requirements.
Over the past year, the insider has sold a total of 1,238 shares and has not made any purchases. This trend is consistent with the overall insider transaction history for Veeva Systems Inc, which shows zero insider buys and 26 insider sells over the same timeframe.
The relationship between insider transactions and stock price can provide valuable insights. In this case, the consistent selling by the insider could be interpreted as a lack of confidence in the company's future performance. However, it's important to note that insider selling can occur for a variety of reasons, not all of which are indicative of a company's health or future prospects.
On the day of the insider's recent sell, shares of Veeva Systems Inc were trading at $220, giving the company a market cap of $35.74 billion. The price-earnings ratio stands at 67.01, higher than the industry median of 26.72 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Veeva Systems Inc is modestly undervalued. With a price of $220 and a GuruFocus Value of $265.87, the stock has a price-to-GF-Value ratio of 0.83.
In conclusion, while the insider's recent sell might raise some eyebrows, the company's valuation suggests that the stock is modestly undervalued. Investors should keep a close eye on further insider transactions and other indicators to make informed decisions.
