Insider Buying: The Church & Dwight Co., Inc. (NYSE:CHD) Independent Director Just Bought 18% More Shares

By
Simply Wall St
Published
February 27, 2021
NYSE:CHD

Potential Church & Dwight Co., Inc. (NYSE:CHD) shareholders may wish to note that the Independent Director, James Craigie, recently bought US$482k worth of stock, paying US$80.26 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 18%.

See our latest analysis for Church & Dwight

The Last 12 Months Of Insider Transactions At Church & Dwight

Over the last year, we can see that the biggest insider sale was by the Executive Vice President of International & Global New Products Innovation, Steven Cugine, for US$1.5m worth of shares, at about US$86.67 per share. That means that an insider was selling shares at around the current price of US$78.75. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Steven Cugine was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:CHD Insider Trading Volume February 27th 2021

I will like Church & Dwight better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Church & Dwight

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.2% of Church & Dwight shares, worth about US$39m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Church & Dwight Insiders?

Unfortunately, there has been more insider selling of Church & Dwight stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Church & Dwight makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Church & Dwight. Every company has risks, and we've spotted 2 warning signs for Church & Dwight you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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