We wouldn't blame The Procter & Gamble Company (NYSE:PG) shareholders if they were a little worried about the fact that Susan Whaley, the Chief Legal Officer & Secretary recently netted about US$1.2m selling shares at an average price of US$144. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Procter & Gamble

The Executive Officer, Jon Moeller, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$152 each. So we know that an insider sold shares at around the present share price of US$145. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Procter & Gamble insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Procter & Gamble

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. Procter & Gamble insiders own 0.05% of the company, currently worth about US$181m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Procter & Gamble Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Procter & Gamble is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Procter & Gamble. While conducting our analysis, we found that Procter & Gamble has 2 warning signs and it would be unwise to ignore these.

But note: Procter & Gamble 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.

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.