Have Old Second Bancorp Insiders Been Selling Stock?

We wouldn't blame Old Second Bancorp, Inc. (NASDAQ:OSBC) shareholders if they were a little worried about the fact that Gary Collins, the Vice Chairman of the Board recently netted about US$586k selling shares at an average price of US$14.56. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Old Second Bancorp

The Last 12 Months Of Insider Transactions At Old Second Bancorp

In fact, the recent sale by Gary Collins was the biggest sale of Old Second Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$14.03. While insider selling is a negative, to us, it is more negative if the shares are sold 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.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Old Second Bancorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Old Second Bancorp insiders own 4.1% of the company, worth about US$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Old Second Bancorp Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Old Second Bancorp stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Old Second Bancorp is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for Old Second Bancorp (1 is concerning!) that we believe deserve your full attention.

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.