Have Philip Morris International Inc. (NYSE:PM) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
February 21, 2022
NYSE:PM
Source: Shutterstock

Some Philip Morris International Inc. (NYSE:PM) shareholders may be a little concerned to see that the Executive Chairman of the Board, Andre Calantzopoulos, recently sold a substantial US$8.3m worth of stock at a price of US$111 per share. However, that sale only accounted for 8.6% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Philip Morris International

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$112, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 8.6% of Andre Calantzopoulos's holding.

In the last year Philip Morris International insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:PM Insider Trading Volume February 21st 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Philip Morris International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Philip Morris International insiders own 0.2% of the company, worth about US$290m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

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

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Philip Morris International makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Philip Morris International.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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