Don't Ignore The Insider Selling In Oil-Dri Corporation of America

Anyone interested in Oil-Dri Corporation of America (NYSE:ODC) should probably be aware that the Chief Legal Officer, Laura Scheland, recently divested US$173k worth of shares in the company, at an average price of US$69.27 each. That sale was 12% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Oil-Dri Corporation of America

Oil-Dri Corporation of America Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Vice President of Operations, Aaron Christiansen, for US$417k worth of shares, at about US$70.48 per share. That means that an insider was selling shares at around the current price of US$67.74. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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.

Insiders in Oil-Dri Corporation of America didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Oil-Dri Corporation of America Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Oil-Dri Corporation of America insiders own about US$60m worth of shares. That equates to 12% 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 Do The Oil-Dri Corporation of America Insider Transactions Indicate?

An insider sold Oil-Dri Corporation of America shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Oil-Dri Corporation of America is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Oil-Dri Corporation of America and understanding it should be part of your investment process.

But note: Oil-Dri Corporation of America 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.