Looking at Donaldson Company, Inc.'s (NYSE:DCI ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

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.

Donaldson Company Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President of Enterprise Operations & Supply Chain, Thomas Scalf, for US$767k worth of shares, at about US$73.09 per share. So we know that an insider sold shares at around the present share price of US$67.28. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Thomas Scalf was the only individual insider to sell shares in the last twelve months.

Thomas Scalf divested 17.50k shares over the last 12 months at an average price of US$72.28. 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!

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Insiders At Donaldson Company Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Donaldson Company. Specifically, President of Enterprise Operations & Supply Chain Thomas Scalf ditched US$498k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Donaldson Company

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Donaldson Company insiders own 0.6% of the company, worth about US$46m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Donaldson Company Insiders?

An insider sold Donaldson Company shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Donaldson Company is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Donaldson Company that deserve your attention before buying any shares.

But note: Donaldson Company may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.