We'd be surprised if Ranpak Holdings Corp. (NYSE:PACK) shareholders haven't noticed that the Non-Employee Director, Michael Jones, recently sold US$100k worth of stock at US$6.41 per share. However, the silver lining is that the sale only reduced their total holding by 7.3%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Ranpak Holdings
Over the last year, we can see that the biggest insider purchase was by Independent Director Salil Seshadri for US$420k worth of shares, at about US$4.33 per share. We do like to see buying, but this purchase was made at well below the current price of US$6.24. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 295.50k shares worth US$1.0m. But they sold 28.99k shares for US$172k. In the last twelve months there was more buying than selling by Ranpak Holdings insiders. The average buy price was around US$3.53. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Ranpak Holdings
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.2% of Ranpak Holdings shares, worth about US$42m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Ranpak Holdings Tell Us?
An insider hasn't bought Ranpak Holdings stock in the last three months, but there was some selling. But we take heart from prior transactions. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Ranpak Holdings is showing 3 warning signs in our investment analysis, and 1 of those is concerning...
Of course Ranpak Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.