This Insider Has Just Sold Shares In Procter & Gamble

We wouldn't blame The Procter & Gamble Company (NYSE:PG) shareholders if they were a little worried about the fact that Gary Coombe, a company insider, recently netted about US$3.1m selling shares at an average price of US$172. That sale reduced their total holding by 43% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Procter & Gamble

The Last 12 Months Of Insider Transactions At Procter & Gamble

In the last twelve months, the biggest single sale by an insider was when the President, Jon Moeller, sold US$6.3m worth of shares at a price of US$169 per share. That means that an insider was selling shares at below the current price (US$172). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 10% of Jon Moeller's holding.

Insiders in Procter & Gamble didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Procter & Gamble better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Procter & Gamble

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Procter & Gamble insiders own 0.04% of the company, currently worth about US$169m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Procter & Gamble Insiders?

An insider 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. But it is good to see that Procter & Gamble is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Procter & Gamble that deserve your attention before buying any shares.

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 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.