Trade Alert: President of Enterprise Operations & Supply Chain Of Donaldson Company Thomas Scalf Has Sold Stock

Some Donaldson Company, Inc. (NYSE:DCI) shareholders may be a little concerned to see that the President of Enterprise Operations & Supply Chain, Thomas Scalf, recently sold a substantial US$767k worth of stock at a price of US$71.66 per share. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

Check out our latest analysis for Donaldson Company

Donaldson Company Insider Transactions Over The Last Year

Notably, that recent sale by Thomas Scalf is the biggest insider sale of Donaldson Company shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$73.43, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 25%of Thomas Scalf's holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Donaldson Company better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.7% of Donaldson Company shares, worth about US$57m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Donaldson Company Insiders?

An insider sold Donaldson Company shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Donaldson Company is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Donaldson Company has 1 warning sign we think you should be aware of.

Of course Donaldson Company may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.