Two Packaging and Container Companies Highlight Fresh Insider Selling; Plus Noteworthy Insider Purchases

Supplier of Packaging Solutions Registers Insider Selling

Sonoco Products Co (NYSE:SON) had four different insiders offload shares this past week, three of whom sold freshly-exercised stock appreciation rights. Board member John E. Linville unloaded 33,746 shares on Friday at prices varying from $51.45 to $51.61 per share. 23,746 shares of the freshly-sold block were held through a charitable lead annuity trust (CLAT). After the recent transactions, Mr. Linville currently owns a direct ownership stake of 223,787 shares.

The provider of consumer packaging, industrial products, protective packaging and packaging supply chain services has seen its shares advance by 25% since the start of 2016. Sonoco Products Co (NYSE:SON)’s Board of Directors recently approved a quarterly dividend of $0.37 per share, which yields 2.89% annually. Sonoco recorded net sales of $1.21 billion for the second quarter, down 3.4% year-over-year. The decrease reflects lower selling prices due to lower raw material costs, the closure of one of its packaging services centers in Mexico, and currency headwinds. Ray Carroll’s Breton Hill Capital upped its stake in Sonoco Products Co (NYSE:SON) by 49% during the June quarter to nearly 18,000 shares.

Sensor Designer and Manufacturer Has Executive Offload Entire Stake

James O’Toole, President of the Communications Solutions segment of TE Connectivity Ltd (NYSE:TEL), sold out his entire stake of 13,925 shares on Monday at $61.40 apiece.

The insider selling comes shortly after the sensor designer and manufacturer released its financial results for the fiscal third quarter that ended June 24. The company reported net sales of $3.12 billion for the quarter, flat compared to the same period of the prior year. Growth in the Industrial Solutions and Transportation Solutions segments was offset by a weaker Communications Solutions segment. TE Connectivity Ltd (NYSE:TEL) anticipates net sales in the range of $3.25 billion-to-$3.45 billion for the fiscal fourth quarter 2016. D.E. Shaw & Co. L.P., founded by David E. Shaw, was the owner of 2.48 million shares of TE Connectivity Ltd (NYSE:TEL) on March 31.

Manufacturer of Containerboard and Corrugated Packaging Sees Two Executives Offload Shares

Packaging Corp Of America (NYSE:PKG) had two executives discard shares last week. To start with, Thomas W. H. Walton, Senior Vice President of Sales and Marketing for Corrugated Products, sold 9,000 shares on Friday at prices ranging from $73.50 to $74.05 per share, cutting his overall holding to 34,344 shares. Kent A. Pflederer, Senior Vice President, General Counsel and Secretary, discarded 1,100 shares on the same day for $74.30 each, after which he continues to own 34,623 shares.

The shares of the fourth-largest producer of containerboard and corrugated packaging products in the U.S. are 17% in the green year-to-date. Just recently, analysts at Deutsche Bank downgraded Packaging Corp Of America (NYSE:PKG) to ‘Hold’ from ‘Buy’ and reduced their price target on the stock to $73 from $75, citing limited upside. Deutsche Bank outlined several downside risks for the company, including cost inflation for the company’s major costs that include pulpwood, energy, chemicals and wastepaper. Ken Griffin’s Citadel Advisors LLC had roughly 727,000 shares of Packaging Corp Of America (NYSE:PKG) among its holdings at the end of the first quarter.

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