Yahoo Finance President Eugene Lee Just Bought 17% More Shares In Darden Restaurants, Inc. (NYSE:DRI)
Those following along with Darden Restaurants, Inc. (NYSE:DRI) will no doubt be intrigued by the recent purchase of shares by Eugene Lee, President of the company, who spent a stonking US$1.5m on stock at an average price of US$58.50. Not only is that a big swing, but it increased their holding size by 17%, which is definitely great to see.
Check out our latest analysis for Darden Restaurants
The Last 12 Months Of Insider Transactions At Darden Restaurants
Notably, that recent purchase by Eugene Lee is the biggest insider purchase of Darden Restaurants shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$72.40. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Darden Restaurants insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid US$4.7m for 79.31k shares. But insiders sold 5041 shares worth US$598k. In the last twelve months there was more buying than selling by Darden Restaurants insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Darden Restaurants Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.3% of Darden Restaurants shares, worth about US$29m. 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 Darden Restaurants Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Darden Restaurants shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Darden Restaurants. You'd be interested to know, that we found 1 warning sign for Darden Restaurants and we suggest you have a look.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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