Don't Ignore The Insider Selling In MGP Ingredients

We'd be surprised if MGP Ingredients, Inc. (NASDAQ:MGPI) shareholders haven't noticed that the Independent Director, Lori Mingus, recently sold US$325k worth of stock at US$46.03 per share. That sale was 16% of their holding, so it does make us raise an eyebrow.

View our latest analysis for MGP Ingredients

MGP Ingredients Insider Transactions Over The Last Year

The Director, Donn Lux, made the biggest insider sale in the last 12 months. That single transaction was for US$2.8m worth of shares at a price of US$83.56 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$45.50. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 1.75k shares for US$149k. But insiders sold 83.28k shares worth US$6.5m. All up, insiders sold more shares in MGP Ingredients than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Does MGP Ingredients Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. MGP Ingredients insiders own about US$234m worth of shares (which is 23% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About MGP Ingredients Insiders?

An insider hasn't bought MGP Ingredients stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, MGP Ingredients makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MGP Ingredients. To that end, you should learn about the 2 warning signs we've spotted with MGP Ingredients (including 1 which is significant).

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.

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.