Independent Chairman of the Board Donald Wright Sold A Bunch Of Shares In Richards Packaging Income Fund

We'd be surprised if Richards Packaging Income Fund (TSE:RPI.UN) shareholders haven't noticed that the Independent Chairman of the Board, Donald Wright, recently sold CA$154k worth of stock at CA$32.14 per share. Equally important, that sale actually reduced their holding by a full 96% which hardly makes us feel bullish about the stock.

See our latest analysis for Richards Packaging Income Fund

Richards Packaging Income Fund Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chief Financial Officer, Enzio Di Gennaro, for CA$627k worth of shares, at about CA$33.28 per share. So what is clear is that an insider saw fit to sell at around the current price of CA$32.15. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Notably Enzio Di Gennaro was also the biggest buyer, having purchased CA$364k worth of shares.

Happily, we note that in the last year insiders paid CA$364k for 10.84k shares. But insiders sold 33.80k shares worth CA$1.1m. Over the last year we saw more insider selling of Richards Packaging Income Fund shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Richards Packaging Income Fund insiders own 26% of the company, worth about CA$92m. 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 Does This Data Suggest About Richards Packaging Income Fund Insiders?

The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Richards Packaging Income Fund, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Richards Packaging Income Fund that deserve your attention before buying any shares.

Of course Richards Packaging Income Fund 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.