We wouldn't blame Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) shareholders if they were a little worried about the fact that Richard Callicutt, the Chairman for the Carolinas & Virginia and Director recently netted about US$1.5m selling shares at an average price of US$80.37. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Pinnacle Financial Partners
The Co-Founder & Chairman, Robert McCabe, made the biggest insider sale in the last 12 months. That single transaction was for US$8.3m worth of shares at a price of US$83.14 each. So we know that an insider sold shares at around the present share price of US$80.90. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Pinnacle Financial Partners didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Pinnacle Financial Partners Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Pinnacle Financial Partners insiders own about US$128m worth of shares (which is 2.1% of the company). 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 Does This Data Suggest About Pinnacle Financial Partners Insiders?
Insiders haven't bought Pinnacle Financial Partners stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pinnacle Financial Partners. For example - Pinnacle Financial Partners has 1 warning sign we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.