Have Old Second Bancorp Insiders Been Selling Stock?

We'd be surprised if Old Second Bancorp, Inc. (NASDAQ:OSBC) shareholders haven't noticed that the Independent Director, John Ladowicz, recently sold US$496k worth of stock at US$16.22 per share. That sale was 13% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Old Second Bancorp

The Last 12 Months Of Insider Transactions At Old Second Bancorp

Over the last year, we can see that the biggest insider sale was by the Vice Chairman of the Board, Gary Collins, for US$586k worth of shares, at about US$14.57 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$16.75. 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. This single sale was just 23% of Gary Collins's stake.

All up, insiders sold more shares in Old Second Bancorp 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Old Second Bancorp Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 3.6% of the company, worth about US$28m. 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 Does This Data Suggest About Old Second Bancorp Insiders?

Unfortunately, there has been more insider selling of Old Second Bancorp stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. At Simply Wall St, we've found that Old Second Bancorp has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.

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