In this article, I will feature one consumer stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increased their holdings by more than 10%.
The Coca-Cola Company (NYSE:KO) engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide.
Insider buying during the last 30 days
Here is a table of Coca-Cola's insider-trading activity during the last 30 days.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Muhtar Kent||CEO||Feb 25||10,500||262,118 shares||+4.2%|
|Maria Elena Lagomasino||Director||Feb 24||7,981||23,631 shares||+51.0%|
|Ana Botin||Director||Feb 24||2,500||2,500 shares||from 0 to 2,500|
There have been 20,981 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Coca-Cola's insider-trading activity by calendar month.
Insider buying / shares
Insider selling / shares
There have been 21,581 shares purchased, and there have been 2,175,909 shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.
Coca-Cola reported the full-year 2013 financial results on February 18 with the following highlights:
|Net income||$8.6 billion|
The insiders purchased the shares after this report.
|Qtrly Rev Growth (yoy):||-0.04||-0.01||0.00||0.01|
|PEG (5 yr expected):||2.77||2.24||5.19||2.21|
Coca-Cola has the highest gross margin among these four companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Coca-Cola has seen intensive insider buying during the last 30 days.
There have been three different insiders buying Coca-Cola, and there have not been any insiders selling Coca-Cola during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Coca-Cola has an insider ownership of 0.30%.
The insiders purchased their shares at prices ranging from $37.25 to $37.91. I believe Coca-Cola could be a good pick below $38 based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in KO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.