Avon Products: 6 Different Insiders Have Purchased Shares This Month

| About: Avon Products, (AVP)
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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.

Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Sara Mathew Director May 8 7,500 7,500 shares from 0 to 7,500
Maria Elena Lagomasino Director May 7 7,473 37,598 shares +24.8%
Don Cornwell Director May 7-8 2,120 12,083 shares +21.3%
Douglas Conant Director May 7 37,464 37,464 shares from 0 to 37,464
Paula Stern Director May 8 100 16,099 shares +0.6%
John Higson SVP May 5 3,035 21,073 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.

Month Insider buying / shares Insider selling / shares
May 2014 57,692 0
April 2014 0 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 10,000 0
October 2013 0 0
September 2013 0 0
August 2013 12,200 200
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 1,000 0
February 2013 0 50,000
January 2013 0 0

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.

Company AVP LRLCY REV
Market Cap: 5.78B 104.12B 1.51B
Employees: 36,700 77,452 6,900
Qtrly Rev Growth (yoy): -0.11 -0.00 0.44
Revenue: 9.68B 31.87B 1.64B
Gross Margin: 0.62 0.71 0.64
EBITDA: 711.80M 6.48B 264.90M
Operating Margin: 0.06 0.17 0.13
Net Income: -158.80M 4.10B 37.80M
EPS: -0.48 1.35 0.12
P/E: N/A 25.70 232.50
PEG (5 yr expected): 1.65 N/A 3.33
P/S: 0.60 3.25 0.93

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

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

Company Insider buying / shares Insider selling / shares
LRLCY N/A N/A
REV 0 0

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.