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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. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
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.
Check out our latest analysis for Kimberly-Clark
The Last 12 Months Of Insider Transactions At Kimberly-Clark
Over the last year, we can see that the biggest insider sale was by the Chief Business & Transformation Officer, Jeffrey Melucci, for US$1.9m worth of shares, at about US$136 per share. That means that an insider was selling shares at around the current price of US$133. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Kimberly-Clark insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Kimberly-Clark better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insiders At Kimberly-Clark Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Kimberly-Clark. In total, insider Andrew Drexler sold 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
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. Insiders own 0.2% of Kimberly-Clark shares, worth about US$68m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Kimberly-Clark Insider Transactions Indicate?
An insider hasn't bought Kimberly-Clark 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. But since Kimberly-Clark is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Kimberly-Clark.