Insiders at Ranpak Holdings Corp. (NYSE:PACK) snagged a bargain: a US$110k profit on a US$1.7m buy

Ranpak Holdings Corp. (NYSE:PACK) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. After accounting for the recent loss, the US$1.7m worth of shares they purchased is now worth US$1.8m, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Ranpak Holdings

Ranpak Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Alicia Tranen bought US$553k worth of shares at a price of US$5.08 per share. That means that an insider was happy to buy shares at around the current price of US$5.62. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Ranpak Holdings insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 317.80k shares worth US$1.7m. But they sold 29.30k shares for US$331k. In total, Ranpak Holdings insiders bought more than they sold over the last year. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Ranpak Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. It appears that Ranpak Holdings insiders own 7.1% of the company, worth about US$33m. 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 Ranpak Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Ranpak Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Ranpak Holdings and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Ranpak Holdings has 1 warning sign and it would be unwise to ignore this.

But note: Ranpak Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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.