Colgate-Palmolive Company (NYSE:CL) manufactures and markets consumer products worldwide.
Insider selling during the last 30 days
Here is a table of Colgate-Palmolive's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Francis Williamson||VP||May 2||56,000||No||266,701 shares||17.4%|
|Ronald Martin||VP||May 2||3,000||No||21,276 shares||12.4%|
|Delano Lewis||Director||May 1||5,000||No||23,642 shares + 7,334 options||13.9%|
|Fabian Garcia||COO||May 1||122,000||No||207,091 shares||37.1%|
|Nigel Burton||CMO||April 30||3,547||No||57,110 shares||5.8%|
|Andrew Hendry||CLO||April 8-22||12,000||Yes||192,663 shares + 48,000 options||4.7%|
|Patricia Verduin||CTO||April 15||2,000||Yes||55,624 shares + 2,000 options||3.4%|
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.
|Month||Insider selling / shares||Insider buying / shares|
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.
Colgate-Palmolive reported the first-quarter financial results on April 25 with the following highlights:
|Net income||$388 million|
Five of these seven insiders sold their shares after these results.
Colgate-Palmolive has flat revenue growth currently.
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.
|Qtrly Rev Growth (yoy):||0.00||0.00||-0.02||-0.00|
|PEG (5 yr expected):||2.59||2.24||3.12||2.34|
Colgate-Palmolive has the highest P/S ratio among these four 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 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.