Insiders who bought MGE Energy, Inc. (NASDAQ:MGEE) last year must be regretting not buying more as market cap hits US$2.8b
MGE Energy, Inc. (NASDAQ:MGEE) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a US$290m rise in the company's market capitalisation. Put another way, the original US$137k acquisition is now worth US$148k.
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.
See our latest analysis for MGE Energy
The Last 12 Months Of Insider Transactions At MGE Energy
Notably, that recent purchase by James Berbee is the biggest insider purchase of MGE Energy shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$77.60. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the MGE Energy insiders decided to buy shares at close to current prices.
In the last twelve months MGE Energy insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
MGE Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
MGE Energy Insiders Bought Stock Recently
Over the last quarter, MGE Energy insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$90k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$4.3m worth of MGE Energy stock, about 0.2% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About MGE Energy Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on MGE Energy stock. 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. While conducting our analysis, we found that MGE Energy has 2 warning signs and it would be unwise to ignore them.
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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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.
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