Possible Bearish Signals With Colgate-Palmolive Insiders Disposing Stock

Many Colgate-Palmolive Company (NYSE:CL) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Colgate-Palmolive Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the COO of Europe, Panagiotis Tsourapas, sold US$1.9m worth of shares at a price of US$93.30 per share. So we know that an insider sold shares at around the present share price of US$88.79. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Colgate-Palmolive insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Colgate-Palmolive

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Insiders At Colgate-Palmolive Have Sold Stock Recently

The last quarter saw substantial insider selling of Colgate-Palmolive shares. Specifically, Chief Human Resources Officer Sally Massey ditched US$200k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Colgate-Palmolive insiders own 0.09% of the company, worth about US$66m. 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 Colgate-Palmolive Insiders?

An insider sold Colgate-Palmolive shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Colgate-Palmolive is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Colgate-Palmolive you should be aware of.

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 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.