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The fact that multiple Philip Morris International Inc. (NYSE:PM) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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.
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 Philip Morris International
The Last 12 Months Of Insider Transactions At Philip Morris International
In the last twelve months, the biggest single sale by an insider was when the Non-Executive Chairman, Andre Calantzopoulos, sold US$13m worth of shares at a price of US$130 per share. That means that even when the share price was slightly below the current price of US$130, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 9.6% of Andre Calantzopoulos's stake.
Insiders in Philip Morris International didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
Philip Morris International Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Philip Morris International. Specifically, insiders ditched US$19m 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.
Does Philip Morris International Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Philip Morris International insiders own about US$304m worth of shares (which is 0.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.