- 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.
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%|
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|
There have been 711,891 shares sold, and there have been 2,000 shares purchased by insiders since January 2013.
Kimberly-Clark reported the first-quarter financial results on April 21 with the following highlights:
|Net income||$538 million|
The three insiders sold their shares after these results.
Kimberly-Clark's revenue growth has been slowing down since 2011.
Kimberly-Clark's 2014 guidance is as follows:
|Organic sales growth||3%-5%|
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||-0.01||-0.07||0.01|
|PEG (5 yr expected):||2.66||2.51||2.34|
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|
Procter & Gamble has also seen intensive insider selling during the last 30 days.
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.