Possible Bearish Signals With Packaging Corporation of America Insiders Disposing Stock

Over the past year, many Packaging Corporation of America (NYSE:PKG) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Packaging Corporation of America Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board & CEO, Mark Kowlzan, sold 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$202. So it may not shed much light on insider confidence at current levels.

Packaging Corporation of America insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Packaging Corporation of America Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Packaging Corporation of America insiders own 1.8% of the company, worth about US$323m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Packaging Corporation of America Insiders?

The fact that there have been no Packaging Corporation of America insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Packaging Corporation of America insider transactions don't fill us with confidence. Of course, the future is what matters most. So if you are interested in Packaging Corporation of America, you should check out this free report on analyst forecasts for the company.

But note: Packaging Corporation of America 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 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.