In the last year, many Darling Ingredients Inc. (NYSE:DAR) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Darling Ingredients Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Randall Stuewe, for US$6.2m worth of shares, at about US$62.43 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$43.14. So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid US$1.6m for 34.84k shares. But they sold 243.79k shares for US$16m. Over the last year we saw more insider selling of Darling Ingredients shares, than buying. 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!
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.
Darling Ingredients Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Darling Ingredients. In total, insiders bought US$590k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Darling Ingredients
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$78m 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.
What Might The Insider Transactions At Darling Ingredients Tell Us?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Darling Ingredients insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. 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. Case in point: We've spotted 1 warning sign for Darling Ingredients you should be aware of.
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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