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Many Colgate-Palmolive Company (NYSE:CL) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Colgate-Palmolive
The Last 12 Months Of Insider Transactions At Colgate-Palmolive
In the last twelve months, the biggest single sale by an insider was when the Group President of Europe & Developing Markets, Panagiotis Tsourapas, sold US$1.9m worth of shares at a price of US$93.30 per share. That means that even when the share price was slightly below the current price of US$94.23, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 25% of Panagiotis Tsourapas's holding.
Insiders in Colgate-Palmolive didn't buy any shares in the last year. You can see the insider transactions (by companies and 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!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Colgate-Palmolive Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Colgate-Palmolive shares. In total, insiders dumped US$2.0m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Colgate-Palmolive
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.1% of Colgate-Palmolive shares, worth about US$74m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.