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Summary

  • 6 insiders purchased Avon Products stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • 5 of these 6 insiders increased their holdings by more than 10%.

Avon Products (NYSE:AVP) manufactures and markets beauty and related products.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Avon Products' insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Sara MathewDirectorMay 87,5007,500 sharesfrom 0 to 7,500
Maria Elena LagomasinoDirectorMay 77,47337,598 shares+24.8%
Don CornwellDirectorMay 7-82,12012,083 shares+21.3%
Douglas ConantDirectorMay 737,46437,464 sharesfrom 0 to 37,464
Paula SternDirectorMay 810016,099 shares+0.6%
John HigsonSVPMay 53,03521,073 shares+16.8%

There have been 57,692 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Avon Products' insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
May 201457,6920
April 201400
March 201400
February 201400
January 201400
December 201300
November 201310,0000
October 201300
September 201300
August 201312,200200
July 201300
June 201300
May 201300
April 201300
March 20131,0000
February 2013050,000
January 201300

There have been 80,892 shares purchased, and there have been 50,200 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Avon Products reported the first-quarter financial results on May 1 with the following highlights:

Revenue$2.2 billion
Net loss$168.3 million
Net debt$1.9 billion

The six insiders purchased their shares after these results.

Outlook

For second quarter, Avon Products expects trends to be a bit better, but to still be down in revenue and operating margins versus a year ago. Avon Products expects to resume constant dollar sales and margin growth in the second half of the year, driven by improvements in several of its key markets.

Competition

Avon Products' competitors include L'Oreal SA (OTCPK:LRLCY) and Revlon (NYSE:REV). Here is a table comparing these companies.

CompanyAVPLRLCYREV
Market Cap:5.78B104.12B1.51B
Employees:36,70077,4526,900
Qtrly Rev Growth (yoy):-0.11-0.000.44
Revenue:9.68B31.87B1.64B
Gross Margin:0.620.710.64
EBITDA:711.80M6.48B264.90M
Operating Margin:0.060.170.13
Net Income:-158.80M4.10B37.80M
EPS:-0.481.350.12
P/E:N/A25.70232.50
PEG (5 yr expected):1.65N/A3.33
P/S:0.603.250.93

Avon Products has the lowest P/S ratio among these three companies.

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

CompanyInsider buying / sharesInsider selling / shares
LRLCYN/AN/A
REV00

Only Avon Products has seen intensive insider buying during the last 30 days.

Conclusion

There have been six different insiders buying Avon Products, and there have not been any insiders selling Avon Products during the last 30 days. Five of these six insiders increased their holdings by more than 10%. Avon Products has an insider ownership of 0.19%.

The six insiders purchased their shares at prices ranging from $13.33 to $13.50. I believe Avon Products could be a good pick below $13.50 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AVP over 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.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

Source: Avon Products: 6 Different Insiders Have Purchased Shares This Month