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Over the past year, many Kimberly-Clark Corporation (NYSE:KMB) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Kimberly-Clark
The Last 12 Months Of Insider Transactions At Kimberly-Clark
In the last twelve months, the biggest single sale by an insider was when the Chief Business & Transformation Officer, Jeffrey Melucci, sold US$1.9m worth of shares at a price of US$136 per share. So we know that an insider sold shares at around the present share price of US$126. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In total, Kimberly-Clark insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Kimberly-Clark Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Kimberly-Clark. Specifically, insider Andrew Drexler ditched US$417k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Kimberly-Clark insiders own 0.2% of the company, worth about US$65m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.