Some Diamondback Energy, Inc. (NASDAQ:FANG) shareholders may be a little concerned to see that insider Lyndal Greth recently sold a substantial US$2.0b worth of stock at a price of US$204 per share. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

Diamondback Energy Insider Transactions Over The Last Year

Notably, that recent sale by insider Lyndal Greth was not the only time they sold Diamondback Energy shares this year. They previously made an even bigger sale of -US$2.2b worth of shares at a price of US$170 per share. That means that an insider was selling shares at slightly below the current price (US$193). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 13% of Lyndal Greth's holding.

Diamondback Energy insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and 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!

I will like Diamondback Energy better if I see some big insider buys.

Does Diamondback Energy 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Diamondback Energy insiders own about US$15b worth of shares (which is 27% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Diamondback Energy Insiders?

Insiders sold Diamondback Energy shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Diamondback Energy.

But note: Diamondback Energy 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.

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.