Have Insiders Sold nCino Shares Recently?

We wouldn't blame nCino, Inc. (NASDAQ:NCNO) shareholders if they were a little worried about the fact that Pierre Naude, the Co-Founder & Executive Chairman recently netted about US$555k selling shares at an average price of US$32.60. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.5%.

See our latest analysis for nCino

The Last 12 Months Of Insider Transactions At nCino

Notably, that recent sale by Co-Founder & Executive Chairman Pierre Naude was not the only time they sold 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. So it's clear an insider wanted to take some cash off the table, even below the current price of US$32.44. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 2.7% of Pierre Naude's holding.

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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of nCino

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. It's great to see that nCino insiders own 3.7% of the company, worth about US$138m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At nCino Tell Us?

Insiders haven't bought nCino stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for nCino and we suggest you have a look.

But note: nCino may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.