Have Darling Ingredients Insiders Been Selling Stock?

Some Darling Ingredients Inc. (NYSE:DAR) shareholders may be a little concerned to see that the Chairman & CEO, Randall Stuewe, recently sold a substantial US$6.2m worth of stock at a price of US$62.43 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Darling Ingredients

Darling Ingredients Insider Transactions Over The Last Year

Notably, that recent sale by Randall Stuewe is the biggest insider sale of Darling Ingredients shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$58.26. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid US$689k for 10.95k shares. But insiders sold 278.79k shares worth US$18m. In total, Darling Ingredients insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does Darling Ingredients Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Darling Ingredients insiders own 1.1% of the company, worth about US$102m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Darling Ingredients Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Darling Ingredients stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Darling Ingredients is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Be aware that Darling Ingredients is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...

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.