Have Insiders Sold Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) Shares Recently?

Some Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) shareholders may be a little concerned to see that the Chairman for the Carolinas & Virginia and Director, Richard Callicutt, recently sold a substantial US$731k worth of stock at a price of US$73.08 per share. However, that sale only accounted for 9.8% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Pinnacle Financial Partners

Pinnacle Financial Partners Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Co-Founder & Chairman, Robert McCabe, sold US$1.2m worth of shares at a price of US$55.47 per share. That means that even when the share price was below the current price of US$75.61, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 3.9% of Robert McCabe's stake.

Happily, we note that in the last year insiders paid US$2.5m for 53.50k shares. On the other hand they divested 76.24k shares, for US$4.5m. In total, Pinnacle Financial Partners insiders sold more than they bought over the last year. The sellers received a price of around US$58.94, on average. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. 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!

I will like Pinnacle Financial Partners better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Pinnacle Financial Partners insiders own 2.8% of the company, worth about US$157m. 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 Do The Pinnacle Financial Partners Insider Transactions Indicate?

Insiders haven't bought Pinnacle Financial Partners stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. 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. In terms of investment risks, we've identified 2 warning signs with Pinnacle Financial Partners and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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, but not derivative transactions.

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