Ranpak Holdings Corp. (NYSE:PACK) insiders' US$1.2m purchase saw a boost of US$79k after market cap rose US$135m
Ranpak Holdings Corp. (NYSE:PACK) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 43% resulting in a US$135m addition to the company’s market value. Put another way, the original US$1.2m acquisition is now worth US$1.3m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Ranpak Holdings
Ranpak Holdings Insider Transactions Over The Last Year
The Independent Director Alicia Tranen made the biggest insider purchase in the last 12 months. That single transaction was for US$553k worth of shares at a price of US$5.08 each. That means that an insider was happy to buy shares at around the current price of US$5.45. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Ranpak Holdings share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 236.70k shares worth US$1.2m. But insiders sold 40.22k shares worth US$772k. In total, Ranpak Holdings insiders bought more than they sold over the last year. 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).
Insiders At Ranpak Holdings Have Bought Stock Recently
We saw some Ranpak Holdings insider buying shares in the last three months. Managing Director of APAC Antonio Grassotti purchased US$30k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 7.0% of Ranpak Holdings shares, worth about US$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Ranpak Holdings Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Ranpak Holdings has 2 warning signs and it would be unwise to ignore these.
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, but not derivative transactions.
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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.
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