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Insider Spends US$992k Buying More Shares In Pinnacle Financial Partners
Those following along with Pinnacle Financial Partners, Inc. (NYSE:PNFP) will no doubt be intrigued by the recent purchase of shares by David Ingram, Independent Director of the company, who spent a stonking US$992k on stock at an average price of US$99.16. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 6.6%.
Pinnacle Financial Partners Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder Robert McCabe bought US$1.0m worth of shares at a price of US$99.90 per share. So it's clear an insider wanted to buy, at around the current price, which is US$103. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices. We note that Robert McCabe was both the biggest buyer and the biggest seller.
Over the last year, we can see that insiders have bought 24.08k shares worth US$2.4m. But they sold 6.78k shares for US$630k. Overall, Pinnacle Financial Partners insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Pinnacle Financial Partners
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Pinnacle Financial Partners insiders own 1.2% of the company, worth about US$181m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Pinnacle Financial Partners Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Pinnacle Financial Partners. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Pinnacle Financial Partners (including 1 which is concerning).
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 of direct interests only, but not derivative transactions or indirect interests.
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