Those following along with Pinnacle Financial Partners, Inc. (NYSE:PNFP) will no doubt be intrigued by the recent purchase of shares by Robert McCabe, Founder of the company, who spent a stonking US$1.0m on stock at an average price of US$99.90. While that only increased their holding size by 2.5%, it is still a big swing by our standards.

The Last 12 Months Of Insider Transactions At Pinnacle Financial Partners

The Independent Director David Ingram made the biggest insider purchase in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$90.09 each. We do like to see buying, but this purchase was made at well below the current price of US$103. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid US$4.6m for 50.84k shares. But insiders sold 6.78k shares worth US$630k. In total, Pinnacle Financial Partners insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Pinnacle Financial Partners

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. It's great to see that Pinnacle Financial Partners insiders own 1.3% of the company, worth about US$194m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Pinnacle Financial Partners Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Pinnacle Financial Partners. Looks promising! 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.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.