Have Insiders Sold Richards Packaging Income Fund Shares Recently?

Anyone interested in Richards Packaging Income Fund (TSE:RPI.UN) should probably be aware that the Chief Financial Officer, Enzio Di Gennaro, recently divested CA$627k worth of shares in the company, at an average price of CA$33.00 each. That sale was 21% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Richards Packaging Income Fund

The Last 12 Months Of Insider Transactions At Richards Packaging Income Fund

Notably, that recent sale by Enzio Di Gennaro is the biggest insider sale of Richards Packaging Income Fund shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of CA$33.40. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 21%of Enzio Di Gennaro's holding.

In the last twelve months insiders purchased 10.53k shares for CA$416k. But insiders sold 29.00k shares worth CA$959k. In total, Richards Packaging Income Fund insiders sold more than they bought over the last year. 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!

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 26% of Richards Packaging Income Fund shares, worth about CA$97m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Richards Packaging Income Fund Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Richards Packaging Income Fund, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Richards Packaging Income Fund makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Richards Packaging Income Fund has 2 warning signs we think you should be aware of.

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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.