Have PZ Cussons Insiders Been Selling Stock?

Investors may wish to note that the CEO & Director of PZ Cussons plc, Jonathan Myers, recently netted UK£54k from selling stock, receiving an average price of UK£0.78. It wasn't a huge sale, but it did reduce their holding by 16%. This does not instill confidence.

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The Last 12 Months Of Insider Transactions At PZ Cussons

In fact, the recent sale by Jonathan Myers was the biggest sale of PZ Cussons shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of UK£0.81, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 16% of Jonathan Myers's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for PZ Cussons

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does PZ Cussons Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. PZ Cussons insiders own about UK£8.6m worth of shares. That equates to 2.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At PZ Cussons Tell Us?

An insider hasn't bought PZ Cussons stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for PZ Cussons (of which 2 are significant!) you should know about.

But note: PZ Cussons may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.