Anyone interested in International Paper Company (NYSE:IP) should probably be aware that the Senior Vice President of Corporate Development, John Sims, recently divested US$406k worth of shares in the company, at an average price of US$57.75 each. That sale was 39% of their holding, so it does make us raise an eyebrow.
International Paper Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Senior VP & CFO, Timothy Nicholls, sold US$1.8m worth of shares at a price of US$53.93 per share. That means that an insider was selling shares at slightly below the current price (US$56.60). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 27% of Timothy Nicholls's stake.
In total, International Paper insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!NYSE:IP Insider Trading Volume September 18th 2021
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does International Paper Boast High 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. Insiders own 0.4% of International Paper shares, worth about US$79m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The International Paper Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at International Paper, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since International Paper is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. You'd be interested to know, that we found 2 warning signs for International Paper and we suggest you have a look.
But note: International Paper 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, but not derivative transactions.
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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