Duncan Hawkesby's Recent Buy: Acquires $3.67M In Reynolds Consumer Prods Stock

On August 27, Duncan Hawkesby, Director at Reynolds Consumer Prods (NASDAQ:REYN) executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: Hawkesby's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, involves purchasing 159,506 shares of Reynolds Consumer Prods. The total transaction value is $3,667,497.

At Thursday morning, Reynolds Consumer Prods shares are up by 1.18%, trading at $23.21.

Unveiling the Story Behind 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.

Reynolds Consumer Prods: Financial Performance Dissected

Positive Revenue Trend: Examining Reynolds Consumer Prods's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.86% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.

Profitability Metrics: Unlocking Value

  • Gross Margin: The company shows a low gross margin of 24.09%, suggesting potential challenges in cost control and profitability compared to its peers.

  • Earnings per Share (EPS): With an EPS below industry norms, Reynolds Consumer Prods exhibits below-average bottom-line performance with a current EPS of 0.35.

Debt Management: Reynolds Consumer Prods's debt-to-equity ratio is below the industry average. With a ratio of 0.81, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

In-Depth Valuation Examination:

  • Price to Earnings (P/E) Ratio: The P/E ratio of 15.5 is lower than the industry average, implying a discounted valuation for Reynolds Consumer Prods's stock.

  • Price to Sales (P/S) Ratio: The current P/S ratio of 1.31 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): With a lower-than-industry-average EV/EBITDA ratio of 9.89, Reynolds Consumer Prods presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Delving Into the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Essential Transaction Codes Unveiled

When analyzing transactions, investors tend to focus on those in the open market, 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.

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

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