We’d be surprised if MutualFirst Financial, Inc. (NASDAQ:MFSF) shareholders haven’t noticed that the , Sharon Ferguson, recently sold US$176k worth of stock at US$32.00 per share. The eyebrow raising move amounted to a reduction of 37.4% in their holding.
MutualFirst Financial Insider Transactions Over The Last Year
In fact, the recent sale by Sharon Ferguson was the biggest sale of MutualFirst Financial shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$32.00. 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.
Over the last year, we can see that insiders have bought 1049 shares worth US$27k. But they sold 17211 for US$564k. In total, MutualFirst Financial insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does MutualFirst Financial Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that MutualFirst Financial insiders own 12% of the company, worth about US$33m. 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 Do The MutualFirst Financial Insider Transactions Indicate?
Insiders sold MutualFirst Financial shares recently, but they didn’t buy any. Zooming out, the longer term picture doesn’t give us much comfort. But since MutualFirst Financial is profitable and growing, we’re not too worried by this. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: MutualFirst Financial 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, but not derivative transactions.
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