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 as part of a series of transactions made by Stuewe over the past year, during which he has sold a total of 115,000 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 footprint. Stuewe has over 30 years of experience in the food, agribusiness, and commodities industries, making him a key figure in the company's success.
Darling Ingredients Inc: 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 from both animal and plant sources. Darling Ingredients Inc operates in three main segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. The company's innovative solutions contribute to the circular economy by reducing waste and promoting the efficient use of resources.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been 4 insider buys and 7 insider sells for Darling Ingredients Inc. This indicates a higher number of insider sells compared to buys, which could be a cause for concern among investors. However, it is essential to consider the context of each transaction and the overall performance of the company.
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 $10,269.550 million. The price-earnings ratio is 14.30, which is lower than the industry median of 19.12 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 performance.
Furthermore, with a price of $65 and a GuruFocus Value of $102.22, 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, which takes into account historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
While the higher number of insider sells compared to buys may raise concerns, the stock's current valuation suggests that it could be an attractive investment opportunity. Investors should consider the company's overall performance, growth prospects, and industry trends when making their investment decisions.
Conclusion
The recent sale of 70,000 shares by Randall Stuewe, Chairman and CEO of Darling Ingredients Inc (DAR, Financial), is part of a series of insider transactions over the past year. Although there have been more insider sells than buys, the stock's current valuation and price-earnings ratio suggest that it may be undervalued. Investors should carefully consider the company's performance, growth prospects, and industry trends before making any investment decisions.
