It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in MidWestOne Financial Group, Inc. (NASDAQ:MOFG).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
The Last 12 Months Of Insider Transactions At MidWestOne Financial Group
The Director, Kurt Weise, made the biggest insider sale in the last 12 months. That single transaction was for US$66k worth of shares at a price of US$33.28 each. 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$20.79). So it is hard to draw any strong conclusion from it. Kurt Weise was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid US$256k for 10.27k shares. But insiders sold 3.00k shares worth US$98k. In the last twelve months there was more buying than selling by MidWestOne Financial Group insiders. They paid about US$24.92 on average. This is nice to see since it implies that insiders might see value around current prices. 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!
MidWestOne Financial Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
MidWestOne Financial Group Insiders Bought Stock Recently
There was some insider buying at MidWestOne Financial Group over the last quarter. Insiders purchased US$22k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership of MidWestOne Financial Group
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. MidWestOne Financial Group insiders own about US$29m worth of shares. That equates to 8.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About MidWestOne Financial Group Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Insiders own shares in MidWestOne Financial Group and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in MidWestOne Financial Group, you should check out this free report on analyst forecasts for the company.
Of course MidWestOne Financial Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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. 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.
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