Why Are Estee Lauder Insiders Selling Despite Strong Earnings?
Cosmetics company Estee Lauder Companies Inc. (NYSE:EL) recently reported strong quarterly earnings driven by better markets in the U.S. and China, but despite the positive reception from Wall Street, company officials continue to sell stock through insider trades.
According to Fox Business, the company announced a 25 percent increase in fourth-quarter profit, and stated that it expects sales to continue to improve throughout 2012. Net earnings came in at $51.2 million, or 13 cents per share, compared to last year's $41.1 million, or 10 cents per share.
Estee Lauder's sales rose in every one of its geographic regions except the Asia Pacific, with its skincare sales rising 6 percent to $16 million. The company's makeup sales rose 9 percent $17 million.
"A very strong fourth quarter was driven largely by continued momentum in the U.S. and strong growth in China and travel retail," Estee Lauder CEO Fabrizio Freda said in a statement. "Our strategy is working, we believe it is sustainable and we continue to further strengthen our leadership in prestige beauty."
But with such a positive quarterly report, why have company insiders sold $2.11 million in the last three months?
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