Chris Mayrhofer, VP at Reynolds Consumer Prods REYN, reported an insider sell on September 16, according to a new SEC filing.

What Happened: Mayrhofer’s recent move involves selling 18,000 shares of Reynolds Consumer Prods. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $576,100.

Reynolds Consumer Prods‘s shares are actively trading at $31.69, experiencing a down of 0.56% during Tuesday’s morning session.

About Reynolds Consumer Prods

Reynolds Consumer Products Inc is a provider of household products. The firm is engaged in the production and sales of cooking products, waste and storage products, and tableware. It operates through four reportable segments namely, Reynolds Cooking and Baking, Hefty Waste and Storage, Hefty Tableware, and Presto Products. Reynolds Cooking and Baking segment produce branded and store brand aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners.

Financial Milestones: Reynolds Consumer Prods’s Journey

Negative Revenue Trend: Examining Reynolds Consumer Prods’s financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -1.06% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 27.53%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Reynolds Consumer Prods’s EPS reflects a decline, falling below the industry average with a current EPS of 0.46.

Debt Management: Reynolds Consumer Prods’s debt-to-equity ratio is below the industry average at 0.91, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 18.64, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.81 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Reynolds Consumer Prods’s EV/EBITDA ratio at 11.7 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

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Illuminating the Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Transaction Codes Worth Your Attention

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Reynolds Consumer Prods’s Insider Trades.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.