Trade Alert: The Director Of MGP Ingredients, Inc. (NASDAQ:MGPI), Donn Lux, Has Just Spent US$387k Buying 1.3% More Shares

By
Simply Wall St
Published
March 18, 2022
NasdaqGS:MGPI
Source: Shutterstock

Potential MGP Ingredients, Inc. (NASDAQ:MGPI) shareholders may wish to note that the Director, Donn Lux, recently bought US$387k worth of stock, paying US$77.36 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.3%.

See our latest analysis for MGP Ingredients

MGP Ingredients Insider Transactions Over The Last Year

In fact, the recent purchase by Director Donn Lux was not their only acquisition of MGP Ingredients shares this year. They previously made an even bigger purchase of US$841k worth of shares at a price of US$86.18 per share. That means that an insider was happy to buy shares at above the current price of US$82.11. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid US$1.3m for 16.00k shares. But they sold 15.31k shares for US$1.1m. Overall, MGP Ingredients insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:MGPI Insider Trading Volume March 18th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. MGP Ingredients insiders own 20% of the company, currently worth about US$359m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At MGP Ingredients Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about MGP Ingredients. One for the watchlist, at least! 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, 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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