Trade Alert: CEO & Director Of Unilever Fernando Fernandez Has Sold Stock

Some Unilever PLC (LON:ULVR) shareholders may be a little concerned to see that the CEO & Director, Fernando Fernandez, recently sold a substantial UK£4.6m worth of stock at a price of UK£48.79 per share. That's a big disposal, and it decreased their holding size by 32%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Unilever

Notably, that recent sale by Fernando Fernandez is the biggest insider sale of Unilever shares that we've seen in the last year. That means that an insider was selling shares at around the current price of UK£48.57. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Fernando Fernandez ditched 110.60k shares over the year. The average price per share was €49.37. 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!

View our latest analysis for Unilever

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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. We usually like to see fairly high levels of insider ownership. It appears that Unilever insiders own 0.03% of the company, worth about UK£28m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Unilever Insider Transactions Indicate?

An insider sold Unilever shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Unilever is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Unilever. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Unilever.

But note: Unilever 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 of direct interests only, but not derivative transactions or indirect interests.

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