Have Insiders Sold Mercantile Bank Corporation (NASDAQ:MBWM) Shares Recently?

We note that the Mercantile Bank Corporation (NASDAQ:MBWM) Senior VP, Robert Worthington, recently sold US$88k worth of stock for US$25.04 per share. It might not be a huge sale, but it did reduce their holding size 12%, hardly encouraging.

View our latest analysis for Mercantile Bank

Mercantile Bank Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman of the Board, Michael Price, for US$170k worth of shares, at about US$21.20 per share. That means that an insider was selling shares at slightly below the current price (US$25.68). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 12% of Michael Price's stake.

All up, insiders sold more shares in Mercantile Bank than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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 Mercantile Bank insiders own 8.5% of the company, worth about US$36m. 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 Mercantile Bank Insider Transactions Indicate?

An insider hasn't bought Mercantile Bank stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mercantile Bank. Be aware that Mercantile Bank is showing 4 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

Of course Mercantile Bank 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.

When trading Mercantile Bank or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.