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

May. 7.14 | About: Colgate-Palmolive Co. (CL)

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.

Click to enlarge

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%
Click to enlarge

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
May 2014 186,000 0
April 2014 17,547 0
March 2014 2,000 0
February 2014 28,104 0
January 2014 14,000 0
December 2013 14,000 0
November 2013 48,000 0
October 2013 75,632 0
September 2013 15,649 0
August 2013 158,287 0
July 2013 36,910 0
June 2013 29,110 0
May 2013 136,363 0
April 2013 57,722 0
March 2013 18,556 0
February 2013 96,921 0
January 2013 22,389 0
Click to enlarge

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
Click to enlarge

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

Click to enlarge

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.

Company CL CHD CLX PG
Market Cap: 61.07B 9.35B 11.30B 219.53B
Employees: 37,400 4,200 8,400 121,000
Qtrly Rev Growth (yoy): 0.00 0.00 -0.02 -0.00
Revenue: 17.43B 3.20B 5.63B 84.70B
Gross Margin: 0.59 0.45 0.43 0.49
EBITDA: 4.58B 704.60M 1.17B 19.68B
Operating Margin: 0.24 0.19 0.18 0.20
Net Income: 2.17B 389.30M 576.00M 10.69B
EPS: 2.32 2.76 4.30 3.75
P/E: 28.73 24.54 20.30 21.63
PEG (5 yr expected): 2.59 2.24 3.12 2.34
P/S: 3.51 2.94 2.01 2.61
Click to enlarge

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
CHD 0 27,820
CLX 0 24,431
PG 0 772,247
Click to enlarge

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.