Pinnacle Investment Management Group Insider Lowered Holding By 21% During Last Year

Looking at Pinnacle Investment Management Group Limited's (ASX:PNI ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Our free stock report includes 1 warning sign investors should be aware of before investing in Pinnacle Investment Management Group. Read for free now.

The Last 12 Months Of Insider Transactions At Pinnacle Investment Management Group

Over the last year, we can see that the biggest insider sale was by the Executive Director, Andrew Chambers, for AU$15m worth of shares, at about AU$13.21 per share. That means that an insider was selling shares at slightly below the current price (AU$20.47). 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. It is worth noting that this sale was only 21% of Andrew Chambers's holding. Andrew Chambers was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Pinnacle Investment Management Group

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Pinnacle Investment Management Group insiders own about AU$1.3b worth of shares (which is 28% 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 Investment Management Group Insiders?

The fact that there have been no Pinnacle Investment Management Group insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Pinnacle Investment Management Group, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Pinnacle Investment Management Group has 1 warning sign we think you should be aware of.

Of course Pinnacle Investment Management Group 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.

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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.