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Insiders were net sellers of Prestige Consumer Healthcare Inc.’s (NYSE:PBH ) stock during the past year. That is, insiders sold more stock than they bought.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Prestige Consumer Healthcare
Prestige Consumer Healthcare Insider Transactions Over The Last Year
Notably, that recent sale by Mary Fritz is the biggest insider sale of Prestige Consumer Healthcare 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$61.58. 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. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 8.4% of Mary Fritz’s holding.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Prestige Consumer Healthcare Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Prestige Consumer Healthcare shares. Specifically, Senior Vice President of Quality & Regulatory Affairs Mary Fritz ditched US$50k 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.
Does Prestige Consumer Healthcare Boast High 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. Insiders own 0.7% of Prestige Consumer Healthcare shares, worth about US$21m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Prestige Consumer Healthcare Tell Us?
An insider sold Prestige Consumer Healthcare shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. But since Prestige Consumer Healthcare is profitable and growing, we’re not too worried by this. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Prestige Consumer Healthcare (1 is potentially serious!) and we strongly recommend you look at these before investing.
Of course Prestige Consumer Healthcare 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, but not derivative transactions.
What are the risks and opportunities for Prestige Consumer Healthcare?
Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally.
View Full Analysis
Rewards
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Trading at 44.4% below our estimate of its fair value
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Earnings are forecast to grow 5.22% per year
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Earnings grew by 16.2% over the past year
Risks
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Debt is not well covered by operating cash flow
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Significant insider selling over the past 3 months
View all Risks and Rewards
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.
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