We wouldn't blame Piper Sandler Companies (NYSE:PIPR) shareholders if they were a little worried about the fact that Jonathan Doyle, the Senior Managing Principal recently netted about US$3.4m selling shares at an average price of US$335. However, that sale only accounted for 6.2% of their holding, so arguably it doesn't say much about their conviction.
Piper Sandler Companies Insider Transactions Over The Last Year
Notably, that recent sale by Senior Managing Principal Jonathan Doyle was not the only time they sold Piper Sandler Companies shares this year. Earlier in the year, they fetched US$185 per share in a -US$5.5m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$342. 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. It is worth noting that this sale was only 15% of Jonathan Doyle's holding.
In the last year Piper Sandler Companies 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!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Piper Sandler Companies
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. Piper Sandler Companies insiders own 3.2% of the company, currently worth about US$173m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Piper Sandler Companies Insiders?
Insiders sold Piper Sandler Companies shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Piper Sandler Companies is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Piper Sandler Companies.
But note: Piper Sandler Companies 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with 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.