We wouldn't blame nCino, Inc. (NASDAQ:NCNO) shareholders if they were a little worried about the fact that Jeffrey Horing, the Independent Director recently netted about US$347m selling shares at an average price of US$72.00. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At nCino
In fact, the recent sale by Jeffrey Horing was the biggest sale of nCino shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$78.19). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 13% of Jeffrey Horing's stake.
Happily, we note that in the last year insiders paid US$1.1m for 34.35k shares. But insiders sold 4.89m shares worth US$352m. In total, nCino insiders sold more than they bought over the last year. 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!
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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$267m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At nCino Tell Us?
The insider sales have outweighed the insider buying, at nCino, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for nCino and we suggest you have a look.
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, but not derivative transactions.
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