This Pinnacle Investment Management Group Insider Reduced Their Stake By 21%

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.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Pinnacle Investment Management Group

Pinnacle Investment Management Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Director, Andrew Chambers, sold AU$15m worth of shares at a price of AU$13.21 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$15.18. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was only 21% of Andrew Chambers's holding. The only individual insider seller over the last year was Andrew Chambers.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Insiders At Pinnacle Investment Management Group Have Sold Stock Recently

The last quarter saw substantial insider selling of Pinnacle Investment Management Group shares. In total, Executive Director Andrew Chambers dumped AU$15m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Pinnacle Investment Management Group

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. Pinnacle Investment Management Group insiders own about AU$1.2b worth of shares (which is 40% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Pinnacle Investment Management Group Insider Transactions Indicate?

An insider hasn't bought Pinnacle Investment Management Group stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Pinnacle Investment Management Group is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pinnacle Investment Management Group. Case in point: We've spotted 1 warning sign for Pinnacle Investment Management Group 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com