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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.

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Lizanne GottungSVPApril 2815,493No20,087 shares43.5%
Kimberly UnderhillPresident, KCPApril 285,864No18,490 shares24.1%
Joanne BauerPresident, KCHApril 255,348No22,351 shares19.3%

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.

MonthInsider selling / sharesInsider buying / shares
April 201426,7050
March 201400
February 201431,4530
January 201465,1330
December 201300
November 2013334,0530
October 201300
September 201300
August 201302,000
July 201317,9890
June 201300
May 2013159,0450
April 201334,5330
March 201300
February 201314,3300
January 201328,6500

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

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 growth3%-5%
EPS$6.00-$6.20

(click to enlarge)

(Source: Investor presentation)

Competition

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

CompanyKMBENRPG
Market Cap:41.87B7.12B222.12B
Employees:57,00013,000121,000
Qtrly Rev Growth (yoy):-0.01-0.070.01
Revenue:21.11B4.39B84.74B
Gross Margin:0.340.470.50
EBITDA:4.22B866.60M19.37B
Operating Margin:0.160.170.19
Net Income:2.15B385.10M10.65B
EPS:5.586.113.72
P/E:19.9218.2822.25
PEG (5 yr expected):2.662.512.34
P/S:2.001.592.64

Kimberly-Clark has the highest PEG ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
ENR530800
PG0754,135

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.

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