Anyone interested in Oil-Dri Corporation of America (NYSE:ODC) should probably be aware that the Vice President of Operations, Aaron Christiansen, recently divested US$417k worth of shares in the company, at an average price of US$69.58 each. The eyebrow raising move amounted to a reduction of 30% in their holding.
The Last 12 Months Of Insider Transactions At Oil-Dri Corporation of America
Notably, that recent sale by Aaron Christiansen is the biggest insider sale of Oil-Dri Corporation of America shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$73.62. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 30% of Aaron Christiansen's holding.
Aaron Christiansen ditched 7.07k shares over the year. The average price per share was US$69.09. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Oil-Dri Corporation of America Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Oil-Dri Corporation of America insiders own about US$65m 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 our longer term analysis of insider transactions didn't bring confidence, either. But since Oil-Dri Corporation of America is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oil-Dri Corporation of America. You'd be interested to know, that we found 1 warning sign for Oil-Dri Corporation of America and we suggest you have a look.
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.