We often see insiders buying up shares in companies that perform well over the long term. 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 before you buy or sell MutualFirst Financial, Inc. (NASDAQ:MFSF), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
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 don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At MutualFirst Financial
In the last twelve months, the biggest single sale by an insider was when the Senior VP & Director, Charles Viater, sold US$166k worth of shares at a price of US$38.80 per share. 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$29.59). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Charles Viater.
In the last twelve months insiders purchased 1049 shares for US$27k. But insiders sold 15006 shares worth US$559k. Charles Viater sold a total of 15006 shares over the year at an average price of US$37.23. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of MutualFirst Financial
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. MutualFirst Financial insiders own about US$31m worth of shares. That equates to 12% 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 MutualFirst Financial Insiders?
It doesn’t really mean much that no insider has traded MutualFirst Financial shares in the last quarter. We don’t take much encouragement from the transactions by MutualFirst Financial insiders. But it’s good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in MutualFirst Financial, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.