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Summary

  • 7 insiders sold Colgate-Palmolive stock within one month.
  • The stock was not purchased by any insiders in the month of intensive selling.
  • 4 of these 7 insiders decreased their holdings by more than 10%.

Colgate-Palmolive Company (NYSE:CL) manufactures and markets consumer products worldwide.

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Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Francis WilliamsonVPMay 256,000No266,701 shares17.4%
Ronald MartinVPMay 23,000No21,276 shares12.4%
Delano LewisDirectorMay 15,000No23,642 shares + 7,334 options13.9%
Fabian GarciaCOOMay 1122,000No207,091 shares37.1%
Nigel BurtonCMOApril 303,547No57,110 shares5.8%
Andrew HendryCLOApril 8-2212,000Yes192,663 shares + 48,000 options4.7%
Patricia VerduinCTOApril 152,000Yes55,624 shares + 2,000 options3.4%

There have been 203,547 shares sold by insiders during the last 30 days. Andrew Hendry and Patricia Verduin sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Colgate-Palmolive's insider activity by calendar month.

MonthInsider selling / sharesInsider buying / shares
May 2014186,0000
April 201417,5470
March 20142,0000
February 201428,1040
January 201414,0000
December 201314,0000
November 201348,0000
October 201375,6320
September 201315,6490
August 2013158,2870
July 201336,9100
June 201329,1100
May 2013136,3630
April 201357,7220
March 201318,5560
February 201396,9210
January 201322,3890

There have been 957,190 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of May 2014 has seen the most insider selling.

Financials

Colgate-Palmolive reported the first-quarter financial results on April 25 with the following highlights:

Revenue$4.3 billion
Net income$388 million
Cash$1.8 billion
Debt$6.7 billion

Five of these seven insiders sold their shares after these results.

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Colgate-Palmolive has flat revenue growth currently.

Outlook

Colgate-Palmolive expects diluted earnings per share for 2014 to grow 4% to 5% on a dollar basis and at a double-digit rate on a currency neutral basis.

Competition

Colgate-Palmolive's competitors include Church & Dwight (NYSE:CHD), Clorox (NYSE:CLX), and Procter & Gamble (NYSE:PG). Here is a table comparing these companies.

CompanyCLCHDCLXPG
Market Cap:61.07B9.35B11.30B219.53B
Employees:37,4004,2008,400121,000
Qtrly Rev Growth (yoy):0.000.00-0.02-0.00
Revenue:17.43B3.20B5.63B84.70B
Gross Margin:0.590.450.430.49
EBITDA:4.58B704.60M1.17B19.68B
Operating Margin:0.240.190.180.20
Net Income:2.17B389.30M576.00M10.69B
EPS:2.322.764.303.75
P/E:28.7324.5420.3021.63
PEG (5 yr expected):2.592.243.122.34
P/S:3.512.942.012.61

Colgate-Palmolive has the highest P/S ratio among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
CHD027,820
CLX024,431
PG0772,247

Procter & Gamble has also seen intensive insider selling during the last 30 days.

Conclusion

There have been seven different insiders selling Colgate-Palmolive, and there have not been any insiders buying Colgate-Palmolive during the last 30 days. Four of these seven insiders decreased their holdings by more than 10%. Colgate-Palmolive has an insider ownership of 0.20%.

Before going short Colgate-Palmolive, I would like to get a bearish confirmation from the Point & Figure chart. The four main reasons for the proposed short entry are a relatively high P/S ratio, relatively high P/E 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.

Source: Colgate-Palmolive: 7 Different Insiders Have Sold Shares During The Last 30 Days