Have Insiders Sold Darling Ingredients Shares Recently?

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$1.5m worth of stock at a price of US$42.84 per share. However, that sale only accounted for 5.2% of their holding, so arguably it doesn't say much about their conviction.

Check out 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. Earlier in the year, they fetched US$62.43 per share in a -US$6.2m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$41.97. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 31.84k shares for US$1.4m. On the other hand they divested 208.75k shares, for US$13m. Over the last year we saw more insider selling of Darling Ingredients shares, than buying. 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 Darling Ingredients 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Darling Ingredients insiders own about US$77m worth of shares. That equates to 1.1% of the company. 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 Darling Ingredients Insiders?

Unfortunately, there has been more insider selling of Darling Ingredients stock, than buying, 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. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Darling Ingredients. Be aware that Darling Ingredients is showing 2 warning signs in our investment analysis, and 1 of those is significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.