Insiders Were Offloading Shares of These 3 Companies This Week

RPM International Inc. (NYSE:RPM) also had an insider sell shares this week. Matthew T. Ratajczak, Vice President – Global Tax and Treasurer, offloaded 5,114 shares on Tuesday at prices varying from $39.00 to $39.50 per share, and currently owns 42,579 shares. The company manufactures and sells coatings, sealants and specialty chemicals for maintenance and improvement applications. The aforementioned sale comes after RPM released its earnings report for the second quarter of fiscal year 2016, which was well received by the market. RPM International reported consolidated net sales of $2.40 billion for the first half of fiscal year 2016, marking an increase of 5.4% year-over-year. The increase was mainly achieved due to strong organic sales growth and acquisitions, which were offset by unfavorable exchange translations.

The timing of the recent insider sale suggests that the trading window for RPM’s insiders has just opened, so investors should not necessarily be alarmed by the insider trading activity. RPM’s shares are down by 15% over the last year, while the recent broader market sell-off has made the valuation of the company more attractive. The stock trades at a forward P/E of 13.92, which is slightly below the forward P/E ratio for the S&P 500 benchmark. Earlier this year, Seaport Global Securities initiated coverage on the stock with an ‘Accumulate’ rating and a price target of $48. The number of hedge funds in our system with stakes in RPM dropped to 18 from 23 during the September quarter. Steven Cohen’s Point72 Asset Management owned 230,200 shares of RPM International Inc. (NYSE:RPM) on September 30.

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