An Insider At Old Second Bancorp Lowered Their Holding Recently

Viewing insider transactions for Old Second Bancorp, Inc.'s (NASDAQ:OSBC ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Old Second Bancorp Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, John Ladowicz, for US$254k worth of shares, at about US$18.27 per share. That means that even when the share price was slightly below the current price of US$18.39, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 6.6% of John Ladowicz's holding. John Ladowicz was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 5.70k shares worth US$101k. But they sold 13.89k shares for US$254k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Old Second Bancorp

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

Have Old Second Bancorp Insiders Traded Recently?

Independent Director Billy Lyons bought just US$415 worth of shares in that time. That's not much at all. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership Of Old Second Bancorp

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. Insiders own 3.9% of Old Second Bancorp shares, worth about US$37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Old Second Bancorp Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. We don't take much encouragement from the transactions by Old Second Bancorp insiders. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Old Second Bancorp has 1 warning sign we think you should be aware of.

But note: Old Second Bancorp 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.