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Don't Ignore The Insider Selling In MidWestOne Financial Group

Simply Wall St ·  May 13 06:14

We'd be surprised if MidWestOne Financial Group, Inc. (NASDAQ:MOFG) shareholders haven't noticed that the Director, Charles Funk, recently sold US$143k worth of stock at US$21.62 per share. However, the silver lining is that the sale only reduced their total holding by 4.7%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At MidWestOne Financial Group

Notably, that recent sale by Charles Funk is the biggest insider sale of MidWestOne Financial Group shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$21.71. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid US$194k for 8.98k shares. But they sold 12.59k shares for US$271k. Charles Funk divested 12.59k shares over the last 12 months at an average price of US$21.50. 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!

insider-trading-volume
NasdaqGS:MOFG Insider Trading Volume May 13th 2024

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of MidWestOne Financial Group

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. MidWestOne Financial Group insiders own about US$31m worth of shares. That equates to 9.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About MidWestOne Financial Group Insiders?

Unfortunately, there has been more insider selling of MidWestOne Financial Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - MidWestOne Financial Group has 2 warning signs we think you should be aware of.

Of course MidWestOne Financial Group 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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