Yahoo Finance Insider Stock Buying Of Ranpak Holdings Delivers Return On US$1.39m Investment
Insiders who purchased Ranpak Holdings Corp. (NYSE:PACK) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. Even after accounting for the recent loss, the US$1.39m worth of stock purchased by them is now worth US$2.87m or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Ranpak Holdings
The Last 12 Months Of Insider Transactions At Ranpak Holdings
The Independent Director Salil Seshadri made the biggest insider purchase in the last 12 months. That single transaction was for US$420k worth of shares at a price of US$4.33 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$6.96. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 412.00k shares for US$1.4m. On the other hand they divested 13.37k shares, for US$72k. In the last twelve months there was more buying than selling by Ranpak Holdings insiders. The average buy price was around US$3.37. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 8.1% of Ranpak Holdings shares, worth about US$48m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Ranpak Holdings Insider Transactions Indicate?
The fact that there have been no Ranpak Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Ranpak Holdings insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ranpak Holdings. When we did our research, we found 2 warning signs for Ranpak Holdings (1 is significant!) that we believe deserve your full attention.
But note: Ranpak Holdings 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.
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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.
