Yahoo Finance Insiders who bought this year lost CA$57k as Richards Packaging Income Fund (TSE:RPI.UN) sheds CA$63m in value
The recent 11% drop in Richards Packaging Income Fund's (TSE:RPI.UN) stock could come as a blow to insiders who purchased CA$372k worth of stock at an average buy price of CA$52.86 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CA$315k, which is not what they expected.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Richards Packaging Income Fund
The Last 12 Months Of Insider Transactions At Richards Packaging Income Fund
In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Enzio Di Gennaro bought CA$200k worth of shares at a price of CA$51.41 per share. That means that even when the share price was higher than CA$44.80 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 7.04k shares worth CA$372k. On the other hand they divested 200.00 shares, for CA$10k. In total, Richards Packaging Income Fund insiders bought more than they sold over the last year. 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!
Richards Packaging Income Fund is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Richards Packaging Income Fund Insiders Bought Stock Recently
We saw some Richards Packaging Income Fund insider buying shares in the last three months. They bought CA$39k worth in that time. But Independent Chairman of the Board Donald Wright sold CA$10k worth. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
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. Richards Packaging Income Fund insiders own 27% of the company, currently worth about CA$131m based on the recent share price. 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 Does This Data Suggest About Richards Packaging Income Fund Insiders?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Richards Packaging Income Fund insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for Richards Packaging Income Fund 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.
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