Rolf Stangl, a director at Reynolds Consumer Products (REYN), recently bought 7,207 shares. The buy is an initial stake for the director, and came to a total cost of $196,378.
This marks the first insider buy since May 2023, when a company VP bought 5,000 shares for just under $135,000. Otherwise, there was one insider sale back in September, for just over $576,000. Otherwise, company insiders have been inactive over the past two years.
Overall, Reynolds insiders own 74.2% of shares.
The consumer packaging manufacturer is up about 6% over the past year, far underperforming the overall stock market.
Reynolds has had a mixed year, with revenues down 3%, but overall earnings are up 10%. Reynolds has a 10% profit margin, on the higher end for a manufacturing operation, and shares trade at a reasonable 15 times earnings.
Action to take: Reynolds shares peaked in early September and have been trending lower. The stock is now oversold, and looks to be at a point of potential support following the completion of a head-and-shoulders pattern selloff.
Interested investors may want to build a stake here and use any further declines to add to that position.
At current prices, Reynolds pays a 3.4% dividend.
For traders, shares should see at least a partial rebound in the months ahead. The January 2025 $30 calls, last trading for about $0.45, could see mid-to-high double-digit returns.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.