Stock Analysis

This Insider Has Just Sold Shares In The PNC Financial Services Group, Inc. (NYSE:PNC)

  •  Updated
Source: Shutterstock

We wouldn't blame The PNC Financial Services Group, Inc. (NYSE:PNC) shareholders if they were a little worried about the fact that Deborah Guild, a company insider, recently netted about US$581k selling shares at an average price of US$151. That sale reduced their total holding by 36% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for PNC Financial Services Group

The Last 12 Months Of Insider Transactions At PNC Financial Services Group

Over the last year, we can see that the biggest insider purchase was by Independent Lead Director Andrew Feldstein for US$3.0m worth of shares, at about US$123 per share. That means that an insider was happy to buy shares at around the current price of US$148. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for PNC Financial Services Group share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 75.96k shares worth US$8.1m. But they sold 33.92k shares for US$4.8m. In total, PNC Financial Services Group insiders bought more than they sold over the last year. Their average price was about US$106. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

NYSE:PNC Insider Trading Volume January 29th 2021

PNC Financial Services Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of PNC Financial Services Group

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. PNC Financial Services Group insiders own about US$174m worth of shares (which is 0.3% 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 Does This Data Suggest About PNC Financial Services Group Insiders?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PNC Financial Services Group. In terms of investment risks, we've identified 2 warning signs with PNC Financial Services Group and understanding them should be part of your investment process.

Of course PNC Financial Services 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, but not derivative transactions.

When trading PNC Financial Services Group or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

Valuation is complex, but we're helping make it simple.

Find out whether PNC Financial Services Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis