On April 29, a recent SEC filing unveiled that Katy Chen, President at Kimberly-Clark KMB made an insider sell.
What Happened: Chen opted to sell 1,794 shares of Kimberly-Clark, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction’s total worth stands at $234,544.
At Wednesday morning, Kimberly-Clark shares are up by 0.82%, trading at $131.62.
All You Need to Know About Kimberly-Clark
With more than half of its sales from personal care and another third from consumer tissue products, Kimberly-Clark is a leading manufacturer in the tissue and hygiene realm. Its brand mix includes Huggies, PullUps, Kotex, Depend, Kleenex, and Cottonelle. The firm also operates in the professional segment, partnering with businesses to provide safety and sanitary offerings for the workplace. Kimberly-Clark generates just over half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America.
Unraveling the Financial Story of Kimberly-Clark
Decline in Revenue: Over the 3 months period, Kimberly-Clark faced challenges, resulting in a decline of approximately -6.0% in revenue growth as of 31 March, 2025. This signifies a reduction in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.
Analyzing Profitability Metrics:
-
Gross Margin: The company shows a low gross margin of 35.81%, suggesting potential challenges in cost control and profitability compared to its peers.
-
Earnings per Share (EPS): Kimberly-Clark’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.71.
Debt Management: Kimberly-Clark’s debt-to-equity ratio stands notably higher than the industry average, reaching 6.58. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Insights into Valuation Metrics:
-
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 17.79 is lower than the industry average, indicating potential undervaluation for the stock.
-
Price to Sales (P/S) Ratio: With a P/S ratio of 2.22 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 12.75 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Illuminating the Importance of Insider Transactions
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
The Insider’s Guide to Important Transaction Codes
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of Kimberly-Clark’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
Add Comment