Some Principal Financial Group, Inc. (NASDAQ:PFG) shareholders may be a little concerned to see that insider Thomas Wee Yee Cheong recently sold a substantial US$1.4m worth of stock at a price of US$101 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

Principal Financial Group Insider Transactions Over The Last Year

Notably, that recent sale by Thomas Wee Yee Cheong is the biggest insider sale of Principal Financial Group shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$101. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Principal Financial Group insiders sold more than they bought over the last year. They sold for an average price of about US$99.45. We don't gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn't put too much weight on it. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Principal Financial Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Principal Financial Group insiders own 0.6% of the company, worth about US$121m. 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 Do The Principal Financial Group Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Principal Financial Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Principal Financial Group is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list 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.

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.