Have Insiders Sold Darling Ingredients Shares Recently?

We wouldn't blame Darling Ingredients Inc. (NYSE:DAR) shareholders if they were a little worried about the fact that Randall Stuewe, the Chairman & CEO recently netted about US$1.4m selling shares at an average price of US$34.05. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.2%.

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Darling Ingredients Insider Transactions Over The Last Year

In fact, the recent sale by Randall Stuewe was the biggest sale of Darling Ingredients shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$31.71. 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.

In the last twelve months insiders purchased 3.83k shares for US$151k. But insiders sold 65.00k shares worth US$2.4m. Randall Stuewe ditched 65.00k shares over the year. The average price per share was US$37.09. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Darling Ingredients

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Darling Ingredients insiders own about US$58m worth of shares. That equates to 1.2% 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.

What Might The Insider Transactions At Darling Ingredients Tell Us?

An insider sold Darling Ingredients shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. Be aware that Darling Ingredients is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: Darling Ingredients may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.