Over the past year, many The PNC Financial Services Group, Inc. (NYSE:PNC) insiders sold a significant stake in the company which may have piqued investors’ interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
If you’re not interested in researching PNC’s insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!
PNC Financial Services Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP and Head of Corporate & Institutional Banking, Michael Lyons, sold US$1.0m worth of shares at a price of US$183 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$160). So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of PNC Financial Services Group shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insiders At PNC Financial Services Group Have Sold Stock Recently
The last three months saw significant insider selling at PNC Financial Services Group. 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. In light of this it’s hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of PNC Financial Services Group
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PNC Financial Services Group insiders own about US$225m worth of shares (which is 0.3% of the company). 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. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For example – PNC Financial Services Group has 1 warning sign we think you should be aware of.
Of course PNC Financial Services Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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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