Don't Ignore The Insider Selling In nCino

Some nCino, Inc. (NASDAQ:NCNO) shareholders may be a little concerned to see that the Co-Founder & Executive Chairman, Pierre Naude, recently sold a substantial US$649k worth of stock at a price of US$20.86 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.8%.

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nCino Insider Transactions Over The Last Year

In fact, the recent sale by Co-Founder & Executive Chairman Pierre Naude was not their only sale of nCino shares this year. They previously made an even bigger sale of -US$944k worth of shares at a price of US$30.63 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$21.45. So it may not tell us anything about how insiders feel about the current share price.

In the last year nCino insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for nCino

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Insider Ownership Of nCino

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. We usually like to see fairly high levels of insider ownership. Insiders own 3.6% of nCino shares, worth about US$91m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The nCino Insider Transactions Indicate?

Insiders sold nCino shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing nCino. Every company has risks, and we've spotted 1 warning sign for nCino you should know about.

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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.