An Insider At Darling Ingredients Lowered Their Holding Recently

From what we can see, insiders were net sellers in Darling Ingredients Inc.'s (NYSE:DAR ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Darling Ingredients

The Last 12 Months Of Insider Transactions At Darling Ingredients

In fact, the recent sale by Chairman & CEO Randall Stuewe was not their only sale of Darling Ingredients shares this year. They previously made an even bigger sale of -US$1.5m worth of shares at a price of US$42.84 per share. That means that an insider was selling shares at around the current price of US$40.13. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$741k for 17.83k shares. But they sold 59.96k shares for US$2.5m. Randall Stuewe divested 59.96k shares over the last 12 months at an average price of US$42.47. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Darling Ingredients Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Darling Ingredients. In total, Chairman & CEO Randall Stuewe dumped US$1.0m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Darling Ingredients 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 1.1% of Darling Ingredients shares, worth about US$70m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Darling Ingredients Insiders?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While it's good to be aware of 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. For example, Darling Ingredients has 3 warning signs (and 1 which is concerning) we think you should know about.

Of course Darling Ingredients 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.