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$2.0m worth of stock at a price of US$217 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 1.9%.

Packaging Corporation of America Insider Transactions Over The Last Year

In fact, the recent sale by Chairman of the Board & CEO Mark Kowlzan was not their only sale of Packaging Corporation of America shares this year. Earlier in the year, they fetched US$216 per share in a -US$5.4m sale. That means that an insider was selling shares at below the current price (US$219). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 5.2% of Mark Kowlzan's stake.

In the last year Packaging Corporation of America insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Packaging Corporation of America

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Packaging Corporation of America insiders own 1.7% of the company, currently worth about US$328m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

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

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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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.

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.