Ranpak Holdings Insiders Enjoying US$889k Appreciation On US$622.5k Investment

Ranpak Holdings Corp. (NYSE:PACK) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 25% resulting in a US$129m addition to the company’s market value. Put another way, the original US$622.5k acquisition is now worth US$1.51m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Ranpak Holdings

The Last 12 Months Of Insider Transactions At Ranpak Holdings

In the last twelve months, the biggest single purchase by an insider was when Independent Director Alicia Tranen bought US$389k worth of shares at a price of US$5.70 per share. Even though the purchase was made at a significantly lower price than the recent price (US$7.73), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 195.50k shares for US$623k. On the other hand they divested 28.99k shares, for US$172k. Overall, Ranpak Holdings insiders were net buyers during the last year. The average buy price was around US$3.18. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insiders At Ranpak Holdings Have Sold Stock Recently

The last three months saw significant insider selling at Ranpak Holdings. In total, Non-Employee Director Michael Jones sold US$100k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Ranpak Holdings Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ranpak Holdings insiders own about US$50m worth of shares. That equates to 8.2% of the company. 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?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ranpak Holdings. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Ranpak Holdings.

Of course Ranpak Holdings 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com