Have The Procter & Gamble Company (NYSE:PG) Insiders Been Selling Their Stock?

We wouldn't blame The Procter & Gamble Company (NYSE:PG) shareholders if they were a little worried about the fact that R. Keith, the Chief Executive Officer of Beauty & Executive Sponsor of Corporate Sustainability recently netted about US$1.3m selling shares at an average price of US$156. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Procter & Gamble

The Last 12 Months Of Insider Transactions At Procter & Gamble

The President, Jon Moeller, made the biggest insider sale in the last 12 months. That single transaction was for US$4.5m worth of shares at a price of US$149 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$156. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 10% of Jon Moeller's stake.

Procter & Gamble insiders didn't buy any shares over the last year. 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!

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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. We usually like to see fairly high levels of insider ownership. Procter & Gamble insiders own about US$240m worth of shares (which is 0.07% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Procter & Gamble Insider Transactions Indicate?

Insiders sold Procter & Gamble shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. While conducting our analysis, we found that Procter & Gamble has 2 warning signs and it would be unwise to ignore them.

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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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.