On May 23, 2023, Randall Stuewe, Chairman and CEO of Darling Ingredients Inc (DAR, Financial), sold 70,000 shares of the company's stock. This move comes after a year in which Stuewe has sold a total of 70,000 shares and purchased none.
Who is Randall Stuewe?
Randall Stuewe has been the Chairman and CEO of Darling Ingredients Inc since 2003. Under his leadership, the company has grown significantly and expanded its global presence. Stuewe has over 30 years of experience in the agribusiness and food processing industries, making him a key figure in the company's success.
Darling Ingredients Inc's Business Description
Darling Ingredients Inc is a global leader in creating sustainable food, feed, and fuel ingredients from edible and inedible bio-nutrients. The company provides a wide range of products and services, including the development and production of natural ingredients for the food, pharmaceutical, and pet food industries, as well as renewable energy solutions. With a strong commitment to sustainability, Darling Ingredients Inc plays a vital role in reducing waste and promoting a circular economy.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been 4 insider buys and 5 insider sells for Darling Ingredients Inc. This indicates a mixed sentiment among insiders, with more sells than buys. However, it is essential to consider the context of each transaction and the overall market conditions when analyzing insider trading activity.
On the day of Randall Stuewe's recent sell, shares of Darling Ingredients Inc were trading at $65 apiece, giving the stock a market cap of $10,143.494 million. The price-earnings ratio is 14.13, which is lower than the industry median of 19.28 and lower than the company's historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its historical valuation.
Furthermore, with a price of $65 and a GuruFocus Value of $102.23, Darling Ingredients Inc has a price-to-GF-Value ratio of 0.64. This indicates that the stock is significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
While insider selling can sometimes signal a lack of confidence in a company's prospects, it is essential to consider the broader context and individual circumstances of each transaction. In this case, the stock appears to be undervalued, and the overall insider trading activity over the past year has been mixed. Investors should continue to monitor insider transactions and other relevant factors to make informed decisions about Darling Ingredients Inc's stock.
Conclusion
The recent sale of 70,000 shares by Randall Stuewe, Chairman and CEO of Darling Ingredients Inc, may raise questions among investors. However, it is crucial to consider the stock's current valuation and the mixed insider trading activity over the past year. While the stock appears to be undervalued, investors should continue to monitor insider transactions and other relevant factors to make informed decisions about the company's prospects.
