Trade Alert: The Chief Financial Officer Of Richards Packaging Income Fund (TSE:RPI.UN), Enzio Di Gennaro, Has Just Spent CA$104k Buying 2.9% More Shares
Even if it's not a huge purchase, we think it was good to see that Enzio Di Gennaro, the Chief Financial Officer of Richards Packaging Income Fund (TSE:RPI.UN) recently shelled out CA$104k to buy stock, at CA$40.19 per share. However, it only increased their shares held by 2.9%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Richards Packaging Income Fund
Richards Packaging Income Fund Insider Transactions Over The Last Year
Notably, that recent purchase by Enzio Di Gennaro is the biggest insider purchase of Richards Packaging Income Fund shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$39.95). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 3.70k shares for CA$155k. But they sold 200.00 shares for CA$10k. Overall, Richards Packaging Income Fund insiders were net buyers during the last year. 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!
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).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 26% of Richards Packaging Income Fund shares, worth about CA$112m. 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 Richards Packaging Income Fund Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Richards Packaging Income Fund. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Richards Packaging Income Fund and we suggest you have a look.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
Valuation is complex, but we're helping make it simple.
Find out whether Richards Packaging Income Fund is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Richards Packaging Income Fund
Richards Packaging Income Fund, together with its subsidiaries, designs, manufactures, and distributes rigid packaging containers and related components in North America.
Outstanding track record with excellent balance sheet and pays a dividend.