Insiders at Renewable Energy Group, Inc. (NASDAQ:REGI) sold US$4.4m worth of stock, possibly indicating weakness in the future

In the last year, many Renewable Energy Group, Inc. (NASDAQ:REGI) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Renewable Energy Group

The Last 12 Months Of Insider Transactions At Renewable Energy Group

Over the last year, we can see that the biggest insider sale was by the Lead Independent Director, Christopher Sorrells, for US$946k worth of shares, at about US$65.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$49.97). So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 7.50k shares for US$374k. On the other hand they divested 67.15k shares, for US$4.4m. All up, insiders sold more shares in Renewable Energy Group than they bought, 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Renewable Energy Group Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Renewable Energy Group. We note insiders cashed in US$3.4m worth of shares. Meanwhile insiders bought US$374k worth , as we said above . We don't view these transactions as a positive sign.

Does Renewable Energy Group 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 2.2% of Renewable Energy Group shares, worth about US$56m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Renewable Energy Group Insiders?

The insider sales have outweighed the insider buying, at Renewable Energy Group, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Renewable Energy Group has 5 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

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, but not derivative transactions.

When trading Renewable Energy Group or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.