Potential MGP Ingredients, Inc. (NASDAQ:MGPI) shareholders may wish to note that the Independent Director, Terrence Dunn, recently bought US$200k worth of stock, paying US$25.02 for each share. That’s a very decent purchase to our minds and it grew their holding by a solid 13%.
View our latest analysis for MGP Ingredients
The Last 12 Months Of Insider Transactions At MGP Ingredients
Notably, that recent purchase by Terrence Dunn is the biggest insider purchase of MGP Ingredients shares that we’ve seen in the last year. That means that an insider was happy to buy shares at above the current price of US$24.34. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months MGP Ingredients insiders were buying shares, but not selling. They paid about US$29.58 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
MGP Ingredients is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of MGP Ingredients
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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$31m worth of shares. That equates to 7.4% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At MGP Ingredients Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of MGP Ingredients we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing MGP Ingredients. Our analysis shows 2 warning signs for MGP Ingredients (1 is concerning!) and we strongly recommend you look at them before investing.
But note: MGP Ingredients 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, but not derivative transactions.
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