This article has been republished with permission from Binance News.
According to Yahoo News, over the past year, several insiders at The Estée Lauder Companies Inc. (NYSE:EL) have sold a significant stake in the company, potentially piquing investors’ interest. While insider selling can have various explanations, it is important for shareholders to investigate further when numerous insiders are selling.
In the last twelve months, the largest single sale by an insider was when Executive Group President Jane Hudis sold $2.0 million worth of shares at a price of $202 per share. Although insider selling is generally considered negative, it is somewhat comforting that this sale was conducted at a price well above the current share price of $157.
Over the last year, Estée Lauder Companies insiders did not buy any shares. The company’s insiders own about $7.0 billion worth of shares, which is 12% of the company. This significant ownership by insiders generally increases the likelihood that the company is run in the interest of all shareholders. However, more insider buying would be preferable, as the last year of Estée Lauder Companies insider transactions does not inspire confidence. Investors should also be aware of the risks facing the company, such as the 4 warning signs for Estée Lauder Companies that have been identified, with 2 of these being concerning.