Trade Alert: The Independent Director Of MGE Energy, Inc. (NASDAQ:MGEE), James Berbee, Has Just Spent US$68k Buying 33% More Shares

Even if it's not a huge purchase, we think it was good to see that James Berbee, the Independent Director of MGE Energy, Inc. (NASDAQ:MGEE) recently shelled out US$68k to buy stock, at US$66.26 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 33%.

See our latest analysis for MGE Energy

The Last 12 Months Of Insider Transactions At MGE Energy

In fact, the recent purchase by James Berbee was the biggest purchase of MGE Energy shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$72.15. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the MGE Energy insiders decided to buy shares at close to current prices.

MGE Energy insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and 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!

MGE Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does MGE Energy 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. We usually like to see fairly high levels of insider ownership. Based on our data, MGE Energy insiders have about 0.2% of the stock, worth approximately US$4.6m. We prefer to see high levels of insider ownership.

So What Do The MGE Energy Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that MGE Energy insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with MGE Energy and understanding these should be part of your investment process.

Of course MGE Energy 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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