Stock Analysis

Have Insiders Sold Philip Morris International Inc. (NYSE:PM) Shares Recently?

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NYSE:PM
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Some Philip Morris International Inc. (NYSE:PM) shareholders may be a little concerned to see that the Global CEO & Director, Andre Calantzopoulos, recently sold a substantial US$3.5m worth of stock at a price of US$86.37 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.3%.

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Philip Morris International Insider Transactions Over The Last Year

Notably, that recent sale by Andre Calantzopoulos is the biggest insider sale of Philip Morris International shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$86.52, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 5.3% of Andre Calantzopoulos's holding.

In the last year Philip Morris International insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:PM Insider Trading Volume February 26th 2021

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Insider Ownership of Philip Morris International

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Philip Morris International insiders own 0.2% of the company, worth about US$244m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Philip Morris International Tell Us?

Insiders sold Philip Morris International shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Philip Morris International is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Philip Morris International has 3 warning signs we think you should be aware of.

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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, but not derivative transactions.

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