On September 27, 2023, Christine Deputy, Chief People Officer of Pinterest Inc (PINS, Financial), sold 14,896 shares of the company. This latest transaction forms part of a larger trend for the insider, who over the past year has sold a total of 105,202 shares and made no purchases.
Christine Deputy is a seasoned executive with a wealth of experience in human resources and people management. As Chief People Officer at Pinterest, she is responsible for overseeing the company's human resources operations and strategy, including talent acquisition, employee engagement, and organizational development.
Pinterest Inc is a visual discovery engine. The company's platform allows users to discover ideas for various projects and interests, which are then organized into virtual pinboards. Pinterest's business model is primarily based on advertising, where businesses pay to promote their pins and reach a larger audience.
The insider transaction history for Pinterest Inc shows a clear trend towards selling. Over the past year, there have been 57 insider sells and no insider buys. This could be indicative of the insiders' sentiment towards the company's future prospects.
On the day of the insider's recent sell, shares of Pinterest Inc were trading for $26.08 apiece, giving the company a market cap of $17.75 billion. Despite the insider selling trend, the stock appears to be modestly undervalued based on its GuruFocus Value of $30.27, with a price-to-GF-Value ratio of 0.86.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
While the insider's selling activity may raise some eyebrows, it's important to note that insider selling does not necessarily indicate a negative outlook for the company. Insiders may sell shares for a variety of reasons, including personal financial planning or portfolio diversification. Therefore, while it's crucial to monitor insider transactions, they should not be the sole basis for investment decisions.
Investors should also consider other factors such as the company's financial health, market position, and growth prospects. In the case of Pinterest, despite the insider selling trend, the stock's modest undervaluation based on its GF Value suggests potential upside for investors.