Don't Ignore The Fact That This Insider Just Sold Some Shares In nCino, Inc. (NASDAQ:NCNO)

By
Simply Wall St
Published
January 15, 2021

Some nCino, Inc. (NASDAQ:NCNO) shareholders may be a little concerned to see that the Independent Chairman of the Board, Jeffrey Lunsford, recently sold a substantial US$3.4m worth of stock at a price of US$71.06 per share. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

View our latest analysis for nCino

nCino Insider Transactions Over The Last Year

Notably, that recent sale by Independent Chairman of the Board Jeffrey Lunsford was not the only time they sold nCino shares this year. They previously made an even bigger sale of -US$4.4m worth of shares at a price of US$72.00 per share. So we know that an insider sold shares at around the present share price of US$70.59. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 34.35k shares worth US$1.1m. On the other hand they divested 120.70k shares, for US$8.6m. Over the last year we saw more insider selling of nCino shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:NCNO Insider Trading Volume January 15th 2021

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. nCino insiders own about US$294m worth of shares (which is 4.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At nCino Tell Us?

An insider sold nCino shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. 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 nCino. For instance, we've identified 3 warning signs for nCino (1 is significant) you should be aware of.

Of course nCino 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.

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This article by Simply Wall St is general in nature. 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.
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