Some Pinterest, Inc. (NYSE:PINS) shareholders may be a little concerned to see that the CFO & Principal Accounting Officer, Julia Donnelly, recently sold a substantial US$1.4m worth of stock at a price of US$23.48 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
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The Last 12 Months Of Insider Transactions At Pinterest
In fact, the recent sale by Julia Donnelly was the biggest sale of Pinterest shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of US$23.68. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was 100% of Julia Donnelly’s stake.
In the last year Pinterest insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Pinterest
For those who like to find hidden gems this freelist of small cap companies with recent insider purchasing, could be just the ticket.
Does Pinterest Boast High 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Pinterest insiders own about US$1.7b worth of shares (which is 13% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Pinterest Tell Us?
Insiders haven’t bought Pinterest stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. 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. For example – Pinterest has 2 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist 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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Have feedback on this article? Concerned about the content?Get in touchwith us directly.Alternatively, email editorial-team (at) simplywallst.com.
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.
About NYSE:PINS
Operates as a visual search and discovery platform in the United States, Canada, Europe, and internationally.
Excellent balance sheet with reasonable growth potential.
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