Senior VP & Chief Supply Chain Officer Douglas Milanes Sold A Bunch Of Shares In Darden Restaurants

We wouldn't blame Darden Restaurants, Inc. (NYSE:DRI) shareholders if they were a little worried about the fact that Douglas Milanes, the Senior VP & Chief Supply Chain Officer recently netted about US$981k selling shares at an average price of US$172. That diminished their holding by a very significant 60%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Darden Restaurants

Darden Restaurants Insider Transactions Over The Last Year

In fact, the recent sale by Douglas Milanes was the biggest sale of Darden Restaurants shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$164. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Darden Restaurants insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Darden Restaurants better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Darden Restaurants Boast High 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 0.5% of Darden Restaurants shares, worth about US$91m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Darden Restaurants Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Darden Restaurants makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 3 warning signs with Darden Restaurants and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.