Trade Alert: Senior VP Of Reynolds Consumer Products Chris Mayrhofer Has Sold Stock

We wouldn't blame Reynolds Consumer Products Inc. (NASDAQ:REYN) shareholders if they were a little worried about the fact that Chris Mayrhofer, the Senior VP recently netted about US$576k selling shares at an average price of US$32.01. Probably the most concerning element of the whole transaction is that the disposal amounted to 70% of their entire holding.

See our latest analysis for Reynolds Consumer Products

Reynolds Consumer Products Insider Transactions Over The Last Year

In fact, the recent sale by Chris Mayrhofer was the biggest sale of Reynolds Consumer Products shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$31.35. 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).

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

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. Reynolds Consumer Products insiders own about US$5.0b worth of shares (which is 74% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Reynolds Consumer Products Insiders?

An insider hasn't bought Reynolds Consumer Products stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Reynolds Consumer Products is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Reynolds Consumer Products you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.