Have MGP Ingredients Insiders Been Selling Stock?

We'd be surprised if MGP Ingredients, Inc. (NASDAQ:MGPI) shareholders haven't noticed that the Independent Director, Lori Mingus, recently sold US$251k worth of stock at US$90.88 per share. On the bright side, that sale was only 5.8% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for MGP Ingredients

The Last 12 Months Of Insider Transactions At MGP Ingredients

Over the last year, we can see that the biggest insider sale was by the Director, Donn Lux, for US$2.8m worth of shares, at about US$83.56 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$90.35. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 1.3% of Donn Lux's holding.

Over the last year, we can see that insiders have bought 1.75k shares worth US$149k. But insiders sold 105.97k shares worth US$9.6m. Over the last year we saw more insider selling of MGP Ingredients shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does MGP Ingredients 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. MGP Ingredients insiders own about US$460m 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 sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MGP Ingredients. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of MGP Ingredients.

Of course MGP Ingredients 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.