Over the past year, many PNC Financial Services Group, Inc. (NYSE:PNC) insiders sold a large stake in the company, which may have piqued investor interest. Knowing whether insiders are buying is generally more useful when evaluating insider trades, as insider selling can have a variety of explanations. However, shareholders should take a closer look at whether multiple insiders are selling shares over a period of time.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we think it makes perfect sense to keep tabs on what insiders are doing.
If you’re not interested in researching PNC’s insider trading, we have a free list of interesting investment ideas to potentially inspire your next investment!
PNC Financial Services Group Insider Trading Over the Last Year
In the past twelve months, the largest single insider sale occurred when Executive Vice President and Head of Corporate and Institutional Banking Michael Lyons sold $1.0 million worth of shares to the price of $183 per share. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. The silver lining is that this sale took place above the last price (US$160). So this may not shed much light on insider confidence at current levels.
Over the past year, we have seen more insider selling of PNC Financial Services Group shares than buying. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all individual trades including stock price, individual and date!
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PNC Financial Services Group insiders recently sold shares
The past three months have seen significant insider selling at PNC Financial Services Group. Specifically, Executive Vice President and Head of Corporate and Institutional Banking Michael Lyons dumped $584,000 worth of stock during this time, and we saw no buys. In light of this, it’s hard to say that all insiders think stocks are a good deal.
PNC Financial Services Group Insider Ownership
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Insiders of the PNC Financial Services Group own approximately $225 million in stock (or 0.3% of the company). Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
What could insider trading at PNC Financial Services Group tell us?
An insider recently sold shares, but did not buy. Zooming out, the longer term image doesn’t give us much comfort. It’s good to see strong insider ownership, but insider selling leaves us cautious. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. For example – PNC Financial Services Group has 1 warning sign we think you should know.
Sure PNC Financial Services Group may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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