On October 25, 2023, Zackery Hicks, Chief Digital & Technology Officer of Kimberly-Clark Corp (KMB, Financial), sold 3,020 shares of the company. This move is part of a broader trend of insider selling at Kimberly-Clark Corp, as we will explore in this article.
Before we delve into the details of the insider selling, let's first introduce Zackery Hicks and Kimberly-Clark Corp. Hicks is a seasoned executive with a strong background in digital and technology. He has been instrumental in driving the digital transformation of Kimberly-Clark Corp, a multinational personal care corporation that produces mostly paper-based consumer products. Kimberly-Clark brand name products include Kleenex facial tissue, Kotex feminine hygiene products, Cottonelle, Scott and Andrex toilet paper, Wypall utility wipes, KimWipes scientific cleaning wipes, and Huggies disposable diapers and baby wipes.
Over the past year, Zackery Hicks has sold 3,020 shares in total and purchased 0 shares in total. This indicates that the insider has been more inclined to sell than to buy Kimberly-Clark Corp's shares.
The insider transaction history for Kimberly-Clark Corp shows that there have been 0 insider buys in total over the past year. Meanwhile, there have been 7 insider sells over the same timeframe. This trend suggests that insiders at Kimberly-Clark Corp may have a bearish outlook on the company's stock.
On the day of the insider's recent sell, shares of Kimberly-Clark Corp were trading for $119.43 apiece. This gives the stock a market cap of $40.14 billion. The price-earnings ratio is 22.84, which is higher than the industry median of 18.92 and higher than the company’s historical median price-earnings ratio. This suggests that Kimberly-Clark Corp's stock may be overvalued compared to its peers and its own historical valuation.
However, with a price of $119.43 and a GuruFocus Value of $142.35, Kimberly-Clark Corp has a price-to-GF-Value ratio of 0.84. This means the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company’s past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sell and the overall trend of insider selling at Kimberly-Clark Corp may raise some concerns, the company's stock appears to be modestly undervalued based on its GF Value. Therefore, investors should carefully consider these factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
