In the last year, multiple insiders have substantially increased their holdings of The PNC Financial Services Group, Inc. (NYSE:PNC) stock, indicating that insiders’ optimism about the company’s prospects has increased.
Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for PNC Financial Services Group
The Last 12 Months Of Insider Transactions At PNC Financial Services Group
The Chairman William Demchak made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$153 each. That means that even when the share price was higher than US$118 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 9.95k shares worth US$1.4m. But insiders sold 8.63k shares worth US$1.2m. Overall, PNC Financial Services Group 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At PNC Financial Services Group Have Bought Stock Recently
Over the last quarter, PNC Financial Services Group insiders have spent a meaningful amount on shares. Independent Director Bryan Salesky spent US$51k on stock, and there wasn’t any selling. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of PNC Financial Services Group
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 0.4% of the company, currently worth about US$179m 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 Do The PNC Financial Services Group Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about PNC Financial Services Group. One for the watchlist, at least! While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we’ve identified 1 warning sign with PNC Financial Services Group and understanding this should be part of your investment process.
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.
Source: simplywall.st
