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The fact that multiple Diamondback Energy, Inc. (NASDAQ:FANG) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Diamondback Energy
Over the last year, we can see that the biggest insider sale was by the insider, Lyndal Greth, for US$2.3b worth of shares, at about US$175 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$129). So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 10.83k shares worth US$1.8m. But insiders sold 13.32m shares worth US$2.3b. Over the last year we saw more insider selling of Diamondback Energy 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!
Check out our latest analysis for Diamondback Energy
I will like Diamondback Energy better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Diamondback Energy Insiders Bought Stock Recently
Over the last quarter, Diamondback Energy insiders have spent a meaningful amount on shares. Specifically, Independent Director Frank Tsuru bought US$313k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Diamondback Energy insiders own about US$13b worth of shares (which is 36% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.