Top-level insiders such as C-suite executives tend to have a good understanding of their companies’ operating activities. If they’re buying company stock, it’s often a sign that the outlook for the stock is attractive.
Here, we are going to highlight recent insider purchases at Sealed Air Corp (SEE:US). Sealed Air is a global packaging company that is headquartered in the US. The company’s best-known brands are Cryovac food packaging and Bubble Wrap cushioning packaging. It’s traded on the New York Stock Exchange and currently has a market capitalization of $8.66 billion.
Insider buying at Sealed Air Corp
Our insider transaction data shows that on August 3, two insiders at Sealed Air bought stock. Those who bought shares were:
- CEO/President Ted Doheny (4,500 shares @ $56.95 per share)
- Chief Growth and Strategy Officer Sergio Pupkin (1,000 shares @ $57.66 per share)
In total, the two insiders spent about $300,000 on stock.
Our insider transaction data shows this is the most significant insider buying at Sealed Air for over a year and a half. The fact that the CEO has spent over $250,000 on stock suggests that he is very confident the stock is set to move higher.
It’s worth noting that both of these insiders have considerable industry experience. Mr. Doheny was previously CEO of Joy Global and drove the business forward focusing on innovation before it was bought by Komatsu. Overall, he has over 30 years of experience at industrial companies. Mr. Pupkin was at Diversey for over 20 years and was Global Vice President of Marketing and Business Development before leaving in 2016. This experience means the insiders are likely to have a good understanding of Sealed Air’s prospects.
Sealed Air was able to overcome inflationary pressures to deliver strong Q2 results.
The Q2 net sales figure of $1.4 billion was up 7% year on year on a reported basis and up 11% on a constant currency basis. Net earnings of $114 million were up 5% year on year while adjusted EBITDA of $293 million was up 12% year on year. Cash flow from operations year to date of $213 million was up 7% on last year.
“We delivered strong second quarter earnings, overcoming sustained inflationary pressures, widespread supply chain challenges and unfavorable foreign currency impacts,” said Mr. Doheny. “Our SEE Operating Engine is performing. We have made significant progress on our strategy leading with Automation, Digital, and Sustainable Packaging Solutions," he added.
Given these solid results, we see the buying of company stock by key insiders at Sealed Air as a positive event.