CHD

Mixed Signals at Church & Dwight($CHD): Director Sells While EVP Buys Following Stock Plunge

05/09/2025 15:06

While outgoing Church & Dwight president and a director are selling shares, one top executive is buying amid the stock's recent plunge, sending mixed signals to investors. On May 9, Director Penry Price sold 14,660 shares at $93.13 per share, netting approximately $1.37 million. Interestingly, on the same day, Executive Vice President Michael Read purchased 3,000 shares at $92.07 per share, representing an investment of about $276,000. These contrasting insider moves came shortly after $CHD's stock plummeted following its Q1 2025 earnings release on May 2. $CHD shares have been on a downward trend since the beginning of the year, with the decline accelerating after the company reported disappointing first-quarter results showing a 2.4% year-over-year revenue decline to $1.47 billion and earnings per share of $0.91, down from $0.96 a year earlier. The stock dropped about 6.5% in a single day following the announcement. Church & Dwight is currently in a leadership transition phase. President Matthew Farrell announced his resignation in September 2024, with current CFO Rick Dierker set to take over as CEO on March 31, 2024. Following this announcement, Farrell executed four consecutive large sales in November 2024, liquidating approximately $600 million worth of shares. The largest transaction occurred on November 6, when he sold 300,000 shares for about $31.15 million. Church & Dwight, known for household brands like ARM & HAMMER, TROJAN, and OXICLEAN, has been facing challenges in its North American market. According to its Q1 2025 results, domestic consumer sales declined by 3% year-over-year, while personal care product sales fell by 2.2%. Despite these challenges, international consumer sales showed resilience, growing by 2.7%. Analyzing the insider trading pattern reveals that out of 22 insider transactions over the past year, 19 were sales, with only three being purchases. Notably, two of these three buys were made by EVP Michael Read, both occurring since December 2024. Read previously purchased 1,900 shares on December 16, 2024, before making his recent purchase after the stock's drop. Consumer sector analysts have expressed concerns about the potential impact of the Trump administration's tariff policies on consumer goods companies. According to reports from February 2, 2025, North American companies face challenges from a 25% levy on goods from Canada and Mexico and a 10% tariff on China, potentially increasing costs throughout the supply chain. Read's buying decision is particularly noteworthy in this context. Before joining Church & Dwight in 2022, Read spent over two decades at Reckitt Benckiser, gaining extensive global marketing and strategy experience in the consumer goods sector. His purchase decision may signal confidence in the company's long-term value despite current challenges. In contrast, Director Price's sale might reflect concerns about short-term uncertainties. Price, who joined Church & Dwight's board in 2023 after experiences at tech companies like Google and LinkedIn, has been providing expertise on digital marketing strategies. Currently, $CHD trades at a premium P/E ratio of 39.50, suggesting the market still has high expectations for future growth. However, recent disappointing results and the predominance of insider selling could weigh on the stock in the near term. Key factors to watch include the upcoming Q2 earnings report and the strategic direction under new CEO Rick Dierker. The broader consumer goods market trends and the actual impact of tariff policies will also be important variables. Investors would be wise to continue monitoring insider trading patterns, particularly any additional purchases by operational executives like Read.

You can receive notifications when news is published.