The Estée Lauder Companies (NYSE:EL) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide.
Insider selling during the last 30 days
Here is a table of Estée Lauder's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|John Demsey||Group President||May 9||10,000||No||67,632 shares||12.9%|
|Sara Moss||EVP||May 7||50,000||No||73,293 shares + 285,939 options||12.2%|
|Cedric Prouve||Group President||May 7||51,032||No||152,124 shares + 419,648 options||8.2%|
|Alexandra Trower||EVP||May 5||18,500||No||27,023 shares||40.6%|
There have been 129,532 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Estée Lauder's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,904,618 shares sold, and there have been zero shares purchased by insiders since January 2013.
Estée Lauder reported the fiscal 2014 third-quarter, which ended March 31, financial results on May 2 with the following highlights:
|Net income||$213.2 million|
The four insiders sold their shares after these results.
Estée Lauder's fiscal 2014 guidance is as follows:
|Local currency sales growth||6%-7%|
|Qtrly Rev Growth (yoy):||0.11||-0.04||-0.00||-0.00|
|PEG (5 yr expected):||1.98||3.23||N/A||2.34|
Estée Lauder has the second-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 four different insiders selling Estée Lauder, and there have not been any insiders buying Estée Lauder during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Estée Lauder has an insider ownership of 2.30%.
Before going short Estée Lauder, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is 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.
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