Kimberly-Clark: 3 Different Insiders Have Sold Shares During The Last 30 Days

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 |  About: Kimberly-Clark Corporation (KMB), Includes: ENR, PG
by: Markus Aarnio

Summary

Three insiders sold Kimberly-Clark's stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All 3 of these insiders decreased their holdings by more than 10%.

Kimberly-Clark Corporation (NYSE:KMB) manufactures and markets personal care, consumer tissue, and health care products worldwide.

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Insider selling during the last 30 days

Here is a table of Kimberly-Clark's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Lizanne Gottung SVP April 28 15,493 No 20,087 shares 43.5%
Kimberly Underhill President, KCP April 28 5,864 No 18,490 shares 24.1%
Joanne Bauer President, KCH April 25 5,348 No 22,351 shares 19.3%
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There have been 26,705 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Kimberly-Clark's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
April 2014 26,705 0
March 2014 0 0
February 2014 31,453 0
January 2014 65,133 0
December 2013 0 0
November 2013 334,053 0
October 2013 0 0
September 2013 0 0
August 2013 0 2,000
July 2013 17,989 0
June 2013 0 0
May 2013 159,045 0
April 2013 34,533 0
March 2013 0 0
February 2013 14,330 0
January 2013 28,650 0
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There have been 711,891 shares sold, and there have been 2,000 shares purchased by insiders since January 2013.

Financials

Kimberly-Clark reported the first-quarter financial results on April 21 with the following highlights:

Revenue $5.3 billion
Net income $538 million
Cash $1.2 billion
Debt $6.9 billion
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The three insiders sold their shares after these results.

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Kimberly-Clark's revenue growth has been slowing down since 2011.

Outlook

Kimberly-Clark's 2014 guidance is as follows:

Organic sales growth 3%-5%
EPS $6.00-$6.20
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(Source: Investor presentation)

Competition

Kimberly-Clark's competitors include Energizer (NYSE:ENR), and Procter & Gamble (NYSE:PG). Here is a table comparing these companies.

Company KMB ENR PG
Market Cap: 41.87B 7.12B 222.12B
Employees: 57,000 13,000 121,000
Qtrly Rev Growth (yoy): -0.01 -0.07 0.01
Revenue: 21.11B 4.39B 84.74B
Gross Margin: 0.34 0.47 0.50
EBITDA: 4.22B 866.60M 19.37B
Operating Margin: 0.16 0.17 0.19
Net Income: 2.15B 385.10M 10.65B
EPS: 5.58 6.11 3.72
P/E: 19.92 18.28 22.25
PEG (5 yr expected): 2.66 2.51 2.34
P/S: 2.00 1.59 2.64
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Kimberly-Clark has the highest PEG ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
ENR 530 800
PG 0 754,135
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Procter & Gamble has also seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Kimberly-Clark, and there have not been any insiders buying Kimberly-Clark during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Kimberly-Clark has an insider ownership of 0.28%.

Before going short Kimberly-Clark, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high PEG ratio, weak revenue growth, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within 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.