U.S. markets closed

Independent Director Charles Gelatt Just Bought Shares In Principal Financial Group, Inc. (NASDAQ:PFG)

Simply Wall St

Principal Financial Group, Inc. (NASDAQ:PFG) shareholders (or potential shareholders) will be happy to see that the Independent Director, Charles Gelatt, recently bought a whopping US$1m worth of stock, at a price of US$35.52. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 17%.

View our latest analysis for Principal Financial Group

Principal Financial Group Insider Transactions Over The Last Year

In fact, the recent purchase by Charles Gelatt was the biggest purchase of Principal Financial Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$35.55). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Charles Gelatt.

You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:PFG Recent Insider Trading, March 14th 2020

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Principal Financial Group insiders own 0.4% of the company, worth about US$40m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Principal Financial Group Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Principal Financial Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Principal Financial Group. At Simply Wall St, we found 1 warning sign for Principal Financial Group that deserve your attention before buying any shares.

But note: Principal Financial Group 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.