Bullish MDU Resources Group Insiders Loaded Up On US$932.4k Of Stock

Multiple insiders secured a larger position in MDU Resources Group, Inc. (NYSE:MDU) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

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.

Check out our latest analysis for MDU Resources Group

The Last 12 Months Of Insider Transactions At MDU Resources Group

The President of WBI Energy Rob Johnson made the biggest insider purchase in the last 12 months. That single transaction was for US$924k worth of shares at a price of US$25.46 each. So it's clear an insider wanted to buy, at around the current price, which is US$26.91. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for MDU Resources Group share holders is that insiders were buying at near the current price.

In the last twelve months MDU Resources Group insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does MDU Resources Group Boast High 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 MDU Resources Group insiders own 1.1% of the company, worth about US$63m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At MDU Resources Group Tell Us?

It doesn't really mean much that no insider has traded MDU Resources Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in MDU Resources Group and we see no evidence to suggest they are worried about the future. 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, MDU Resources Group has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Of course MDU Resources Group 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 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.