Don't Ignore The Insider Selling In Piper Sandler Companies

We wouldn't blame Piper Sandler Companies (NYSE:PIPR) shareholders if they were a little worried about the fact that Jonathan Doyle, the Senior Managing Principal recently netted about US$3.4m selling shares at an average price of US$335. However, that sale only accounted for 6.2% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Piper Sandler Companies

Piper Sandler Companies Insider Transactions Over The Last Year

In fact, the recent sale by Senior Managing Principal Jonathan Doyle was not their only sale of Piper Sandler Companies shares this year. Earlier in the year, they fetched US$185 per share in a -US$5.5m sale. That means that even when the share price was below the current price of US$342, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 15% of Jonathan Doyle's stake.

In the last year Piper Sandler Companies insiders didn't buy any company stock. 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: Most of them are flying under the radar).

Does Piper Sandler Companies Boast High 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. It's great to see that Piper Sandler Companies insiders own 3.2% of the company, worth about US$173m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Piper Sandler Companies Insider Transactions Indicate?

Insiders sold Piper Sandler Companies shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Piper Sandler Companies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Piper Sandler Companies and understanding these should be part of your investment process.

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.