Have MGP Ingredients Insiders Been Selling Stock?

We wouldn't blame MGP Ingredients, Inc. (NASDAQ:MGPI) shareholders if they were a little worried about the fact that Karen Seaberg, the Independent Director recently netted about US$1.4m selling shares at an average price of US$24.17. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

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MGP Ingredients Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Director, Donn Lux, sold US$3.3m worth of shares at a price of US$33.05 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$25.65. So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in MGP Ingredients than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for MGP Ingredients

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

Insider Ownership Of MGP Ingredients

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. MGP Ingredients insiders own 22% of the company, currently worth about US$118m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The MGP Ingredients Insider Transactions Indicate?

Insiders sold MGP Ingredients shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for MGP Ingredients that deserve your attention before buying any shares.

Of course MGP Ingredients 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.

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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.