Double Diamond is a Texel sheep, and it's not unusual for them to be sold with five-figure price tags, according to the Texel Sheep Society.
Texel sheep originated on the island of Texel in the Netherlands. They have a muscular build and produce high-quality lean meat.
The six-month-old sheep was sold following at bidding war at an auction in the town of Lanark, near Glasgow, Scotland on August 27.
The bidding started at £10,500, about $14,000, and went up quickly to the final selling price of £367,500, about $490,000. Diamond was sold by breeder Charlie Boden to three farmers, who hope to breed the sheep.
The sheep's selling price blew past the previously set record. In 2009 another Texel called Deveronvale Perfection sold for £231,000, or about $308,000.
One of the buyers, Jeff Aiken, told the Guardian he had been eyeing the sheep prior to the auction.
"We knew it was going to be something really special. He was just an outstanding animal, backed up by all the best genetics. There was about seven or eight people who really, really wanted him and that's what led to the price," he said.
Aiken, who breeds Texels with his wife, Jen, at their farm in Lancashire, England, said that the sheep's price is rare.
"Don't get me wrong, it is an obscene amount of money to pay for a sheep, and it definitely should not be a reflection on the farming community," he told The Guardian.
Jeff Aiken did not immediately respond to Insider's request for comment.
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