Yahoo Finance Insiders at The PNC Financial Services Group, Inc. (NYSE:PNC) sold US$4.1m worth of stock, possibly indicating weakness in the future
In the last year, many The PNC Financial Services Group, Inc. (NYSE:PNC) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for PNC Financial Services Group
PNC Financial Services Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive VP and Head of Corporate & Institutional Banking, Michael Lyons, for US$1.0m worth of shares, at about US$183 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$153). So it may not shed much light on insider confidence at current levels.
In total, PNC Financial Services Group insiders sold more than they bought over 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!
I will like PNC Financial Services Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
PNC Financial Services Group Insiders Are Selling The Stock
The last quarter saw substantial insider selling of PNC Financial Services Group shares. Specifically, Executive VP and Head of Corporate & Institutional Banking Michael Lyons ditched US$584k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that PNC Financial Services Group insiders own 0.3% of the company, worth about US$215m. 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 PNC Financial Services Group Tell Us?
An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PNC Financial Services Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of PNC Financial Services Group.
But note: PNC Financial Services Group 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, but not derivative transactions.
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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.
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