Don't Ignore The Insider Selling In Packaging Corporation of America

Some Packaging Corporation of America (NYSE:PKG) shareholders may be a little concerned to see that the Chairman of the Board & CEO, Mark Kowlzan, recently sold a substantial US$5.4m worth of stock at a price of US$216 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.2%.

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The Last 12 Months Of Insider Transactions At Packaging Corporation of America

Notably, that recent sale by Chairman of the Board & CEO Mark Kowlzan was not the only time they sold Packaging Corporation of America shares this year. They previously made an even bigger sale of -US$16m worth of shares at a price of US$243 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$211. So it may not shed much light on insider confidence at current levels.

In the last year Packaging Corporation of America insiders didn't buy any company stock. 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!

Check out our latest analysis for Packaging Corporation of America

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Does Packaging Corporation of America 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Packaging Corporation of America insiders own about US$337m worth of shares (which is 1.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Packaging Corporation of America Insider Transactions Indicate?

An insider hasn't bought Packaging Corporation of America stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Packaging Corporation of America is growing earnings. 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. While it's good to be aware of 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Packaging Corporation of America.

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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.