Possible Bearish Signals With Prestige Consumer Healthcare Insiders Disposing Stock
Prestige Consumer Healthcare Inc. (NYSE:PBH) insiders have sold significant amounts of stock over the past year, raising concerns for shareholders. The largest sale was by Senior VP Mary Fritz, who sold $810k worth of shares at $81.99 each, well above the current price of $65.05. No insiders have purchased shares recently, and insider ownership stands at 1.1%. While the lack of recent transactions is not alarming, it suggests a need for shareholders to consider potential risks before investing.
Many Prestige Consumer Healthcare Inc. (NYSE:PBH) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
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Prestige Consumer Healthcare Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Senior Vice President of Quality & Regulatory Affairs, Mary Fritz, sold US$810k worth of shares at a price of US$81.99 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$65.05. So it may not shed much light on insider confidence at current levels.
In the last year Prestige Consumer Healthcare insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Prestige Consumer Healthcare
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Insider Ownership
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.1% of Prestige Consumer Healthcare shares, worth about US$37m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Prestige Consumer Healthcare Insider Transactions Indicate?
The fact that there have been no Prestige Consumer Healthcare insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Prestige Consumer Healthcare insiders. The modest level of insider ownership is, at least, some comfort. 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. In terms of investment risks, we've identified 1 warning sign with Prestige Consumer Healthcare and understanding this should be part of your investment process.
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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.
