Stock Analysis

Senior Vice President of Sales Jean-Francois Roche Just Sold A Bunch Of Shares In Graphic Packaging Holding Company (NYSE:GPK)

NYSE:GPK
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Some Graphic Packaging Holding Company (NYSE:GPK) shareholders may be a little concerned to see that the Senior Vice President of Sales, Jean-Francois Roche, recently sold a substantial US$1.1m worth of stock at a price of US$22.50 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Graphic Packaging Holding

Graphic Packaging Holding Insider Transactions Over The Last Year

Notably, that recent sale by Jean-Francois Roche is the biggest insider sale of Graphic Packaging Holding shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$22.01. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:GPK Insider Trading Volume August 3rd 2022

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

Does Graphic Packaging Holding Boast High 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. 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 1.1% of Graphic Packaging Holding shares, worth about US$73m. 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 Graphic Packaging Holding Insider Transactions Indicate?

An insider hasn't bought Graphic Packaging Holding stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Graphic Packaging Holding makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. For example, Graphic Packaging Holding has 2 warning signs (and 1 which makes us a bit uncomfortable) we think 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, 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.