U.S. Markets close in 2 hrs 8 mins
  • S&P 500

    3,979.51
    +21.88 (+0.55%)
     
  • Dow 30

    33,898.27
    +45.74 (+0.14%)
     
  • Nasdaq

    11,114.35
    +130.57 (+1.19%)
     
  • Russell 2000

    1,836.74
    +0.18 (+0.01%)
     
  • Crude Oil

    80.47
    +2.27 (+2.90%)
     
  • Gold

    1,771.30
    +7.60 (+0.43%)
     
  • Silver

    22.01
    +0.57 (+2.68%)
     
  • EUR/USD

    1.0364
    +0.0029 (+0.2798%)
     
  • 10-Yr Bond

    3.7350
    -0.0130 (-0.35%)
     
  • Vix

    21.93
    +0.04 (+0.18%)
     
  • GBP/USD

    1.1996
    +0.0046 (+0.3839%)
     
  • USD/JPY

    138.7260
    +0.0920 (+0.0664%)
     
  • BTC-USD

    16,884.65
    +482.57 (+2.94%)
     
  • CMC Crypto 200

    400.58
    -0.12 (-0.03%)
     
  • FTSE 100

    7,573.05
    +61.05 (+0.81%)
     
  • Nikkei 225

    27,968.99
    -58.85 (-0.21%)
     

With The Estée Lauder Companies Inc.'s (NYSE:EL)) price down 3.8% this week, insiders might find some solace having sold US$21m worth of shares earlier this year.

Over the past year, insiders sold US$21m worth of The Estée Lauder Companies Inc. (NYSE:EL) stock at an average price of US$290 per share allowing them to get the most out of their money. The company's market valuation decreased by US$3.3b after the stock price dropped 3.8% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Estée Lauder Companies

The Last 12 Months Of Insider Transactions At Estée Lauder Companies

In the last twelve months, the biggest single sale by an insider was when the President, Fabrizio Freda, sold US$5.3m worth of shares at a price of US$268 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$232. So it is hard to draw any strong conclusion from it.

In the last year Estée Lauder Companies insiders didn't buy any company stock. 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!

insider-trading-volume
insider-trading-volume

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Estée Lauder Companies Have Sold Stock Recently

The last three months saw significant insider selling at Estée Lauder Companies. In total, insiders sold US$8.2m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Estée Lauder Companies

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Estée Lauder Companies insiders own about US$6.7b worth of shares (which is 8.1% of the company). 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 Estée Lauder Companies Insiders?

Insiders sold Estée Lauder Companies shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Estée Lauder Companies. While conducting our analysis, we found that Estée Lauder Companies has 1 warning sign and it would be unwise to ignore this.

But note: Estée Lauder Companies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here