Bullish insiders bet US$1.2m on Mid Penn Bancorp, Inc. (NASDAQ:MPB)
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Mid Penn Bancorp, Inc.'s (NASDAQ:MPB) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Mid Penn Bancorp
The Last 12 Months Of Insider Transactions At Mid Penn Bancorp
Over the last year, we can see that the biggest insider purchase was by Lead Independent Director John Noone for US$250k worth of shares, at about US$25.00 per share. So it's clear an insider wanted to buy, at around the current price, which is US$26.59. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for Mid Penn Bancorp share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 46.73k shares worth US$1.2m. But they sold 500.00 shares for US$15k. In the last twelve months there was more buying than selling by Mid Penn Bancorp insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Mid Penn Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Mid Penn Bancorp Have Bought Stock Recently
Over the last quarter, Mid Penn Bancorp insiders have spent a meaningful amount on shares. In total, insiders bought US$100k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Mid Penn Bancorp Boast High 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. It appears that Mid Penn Bancorp insiders own 6.0% of the company, worth about US$25m. 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 Mid Penn Bancorp Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Mid Penn Bancorp shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that Mid Penn Bancorp is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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. 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.
