Lead Independent Director Of nCino Sold 43% Of Their Shares

Anyone interested in nCino, Inc. (NASDAQ:NCNO) should probably be aware that the Lead Independent Director, Pam Kilday, recently divested US$320k worth of shares in the company, at an average price of US$35.51 each. That sale was 43% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for nCino

The Last 12 Months Of Insider Transactions At nCino

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Pierre Naude, for US$944k worth of shares, at about 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$35.22. 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. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 nCino Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. nCino insiders own about US$147m worth of shares (which is 3.7% 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.

So What Does This Data Suggest About nCino Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing nCino. Case in point: We've spotted 2 warning signs for nCino you should be aware of.

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.