Don't Ignore The Insider Selling In Darling Ingredients

We wouldn't blame Darling Ingredients Inc. (NYSE:DAR) shareholders if they were a little worried about the fact that John Sterling, the Executive VP recently netted about US$1.1m selling shares at an average price of US$31.13. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

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Darling Ingredients Insider Transactions Over The Last Year

The Chairman & CEO, Randall Stuewe, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$34.05 each. 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$30.94. So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in Darling Ingredients than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Darling Ingredients

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Darling Ingredients insiders own about US$58m worth of shares. That equates to 1.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Darling Ingredients Insider Transactions Indicate?

Insiders haven't bought Darling Ingredients stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Darling Ingredients. When we did our research, we found 4 warning signs for Darling Ingredients (1 can't be ignored!) that we believe deserve your full attention.

Of course Darling Ingredients may not be the best stock to buy. So you may wish to see this free collection of high quality 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.