We wouldn't blame Pinterest, Inc. (NYSE:PINS) shareholders if they were a little worried about the fact that Lee Brown, the Chief Business Officer recently netted about US$1.3m selling shares at an average price of US$20.77. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

Pinterest Insider Transactions Over The Last Year

In fact, the recent sale by Lee Brown was the biggest sale of Pinterest shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$20.76. While insider selling is a negative, to us, it is more negative if the shares are sold 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.

Insiders in Pinterest didn't buy any shares in the last year. 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!

I will like Pinterest better if I see some big insider buys.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Pinterest insiders own 13% of the company, currently worth about US$1.6b based on the recent share price. 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 Pinterest Insiders?

An insider hasn't bought Pinterest stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pinterest. While conducting our analysis, we found that Pinterest has 2 warning signs and it would be unwise to ignore these.

But note: Pinterest 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.

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.