EVP, Geographies Mogharbel Al Sells 30,000 Shares of SLB

On September 5, 2023, Mogharbel Al, the Executive Vice President of Geographies at Schlumberger Limited (SLB), sold 30,000 shares of the company. This move is part of a series of insider transactions that have been taking place over the past year.

Schlumberger Limited is the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. With product sales and services in more than 120 countries and employing approximately 105,000 people who represent over 140 nationalities, Schlumberger supplies the industry’s most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance sustainably.

Over the past year, the insider has sold a total of 87,467 shares and has not made any purchases. This recent sale of 30,000 shares is a continuation of this trend.

The insider transaction history for SLB shows a total of 28 insider sells over the past year, with no insider buys. This could be an indication of the insider’s confidence in the company’s current stock price or future performance.

On the day of the insider’s recent sale, shares of SLB were trading for $60.24 apiece, giving the stock a market cap of $85.57 billion. The price-earnings ratio is 21.97, which is higher than the industry median of 9.26 and lower than the company’s historical median price-earnings ratio.

With a price of $60.24 and a GuruFocus Value of $102.09, SLB has a price-to-GF-Value ratio of 0.59. This suggests that the stock is a possible value trap, and investors should think twice before investing.

The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.

In conclusion, the recent sale of 30,000 shares by the insider could be a signal to investors about the company’s current valuation. However, with a price-to-GF-Value ratio of 0.59, the stock appears to be a possible value trap. Investors should carefully consider these factors before making investment decisions.