Reynolds Consumer Products Insider Lowered Holding By 70% During Last Year

Viewing insider transactions for Reynolds Consumer Products Inc.'s (NASDAQ:REYN ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Our free stock report includes 1 warning sign investors should be aware of before investing in Reynolds Consumer Products. Read for free now.

Reynolds Consumer Products Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Senior VP, Chris Mayrhofer, for US$576k worth of shares, at about US$32.02 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$23.65. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Chris Mayrhofer.

In the last twelve months insiders purchased 18.08k shares for US$480k. But insiders sold 18.00k shares worth US$576k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Reynolds Consumer Products

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Reynolds Consumer Products Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Reynolds Consumer Products. Independent Chairman Rolf Stangl spent US$149k on stock, and there wasn't any selling. This makes one think the business has some good points.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Reynolds Consumer Products insiders own 74% of the company, currently worth about US$3.7b based on the recent share price. 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 Reynolds Consumer Products Insiders?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Reynolds Consumer Products and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.