Executive VP & Chief Supply Chain Officer Machiel Duijser Sold A Bunch Of Shares In Ecolab

Some Ecolab Inc. (NYSE:ECL) shareholders may be a little concerned to see that the Executive VP & Chief Supply Chain Officer, Machiel Duijser, recently sold a substantial US$1.5m worth of stock at a price of US$264 per share. That diminished their holding by a very significant 60%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Ecolab

The Last 12 Months Of Insider Transactions At Ecolab

Notably, that recent sale by Machiel Duijser is the biggest insider sale of Ecolab shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$267. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 60% of Machiel Duijser's stake.

You can see a visual depiction of insider transactions (by companies and 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 Ecolab 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

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Ecolab insiders own about US$72m worth of shares. That equates to 0.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Ecolab Tell Us?

The insider sales have outweighed the insider buying, at Ecolab, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Ecolab is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. You'd be interested to know, that we found 2 warning signs for Ecolab and we suggest you have a look.

Of course Ecolab may not be the best stock to buy. So you may wish to see this free collection of high quality 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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