Need To Know: Revlon, Inc. (NYSE:REV) Insiders Have Been Selling Shares

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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Revlon, Inc. (NYSE:REV).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

View our latest analysis for Revlon

The Last 12 Months Of Insider Transactions At Revlon

The Non-Executive Vice Chairman of the Board, E. Beattie, made the biggest insider sale in the last 12 months. That single transaction was for US$465k worth of shares at a price of US$23.24 each. That means that an insider was selling shares at below the current price (US$23.45). 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. 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. This single sale was 64.2% of E. Beattie's stake. E. Beattie was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Revlon Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Revlon. Specifically, Ronald Perelman bought US$61k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership of Revlon

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Revlon insiders own 9.1% of the company, currently worth about US$110m based on the recent share price. 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 Revlon Tell Us?

It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider, along with high insider ownership, suggest that Revlon insiders are fairly aligned, and optimistic. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Revlon.

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.

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