Potential MGP Ingredients, Inc. (NASDAQ:MGPI) shareholders may wish to note that the CEO, President & Director, Augustus Griffin, recently bought US$119k worth of stock, paying US$47.75 for each share. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.9%.
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 insider, David Dykstra, for US$411k worth of shares, at about US$82.18 per share. 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$45.10. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 7475 shares for US$427k. But they sold 6546 for US$531k. Over the last year we saw more insider selling of MGP Ingredients shares, than buying. The average sell price was around US$81.13. Insider selling doesn’t make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$45.10. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Does MGP Ingredients Boast High Insider Ownership?
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. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that MGP Ingredients insiders own 7.5% of the company, worth about US$57m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The MGP Ingredients Insider Transactions Indicate?
The recent insider purchases are heartening. But we can’t say the same for the transactions over the last 12 months. While recent transactions indicate confidence in MGP Ingredients, insiders don’t own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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, but not derivative transactions.
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