This Insider Has Just Sold Shares In Pinnacle Investment Management Group

Some Pinnacle Investment Management Group Limited (ASX:PNI) shareholders may be a little concerned to see that the Founder, Ian Macoun, recently sold a substantial AU$77m worth of stock at a price of AU$19.50 per share. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Pinnacle Investment Management Group

Notably, that recent sale by Ian Macoun is the biggest insider sale of Pinnacle Investment Management Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of AU$19.76. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 22% of Ian Macoun's stake.

Pinnacle Investment Management Group insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Pinnacle Investment Management Group

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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. Pinnacle Investment Management Group insiders own 28% of the company, currently worth about AU$1.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Pinnacle Investment Management Group Insiders?

Insiders haven't bought Pinnacle Investment Management Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Pinnacle Investment Management Group makes money, and is growing profits. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Pinnacle Investment Management Group has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

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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.