We'd be surprised if Midland States Bancorp, Inc. (NASDAQ:MSBI) shareholders haven't noticed that the Chief Accounting Officer & Corporate Controller, Donald Spring, recently sold US$147k worth of stock at US$22.07 per share. In particular, we note that the sale equated to a 55% reduction in their position size, which doesn't exactly instill confidence.
Midland States Bancorp Insider Transactions Over The Last Year
In fact, the recent sale by Donald Spring was the biggest sale of Midland States Bancorp shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$21.47. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders purchased 3.29k shares for US$74k. On the other hand they divested 9.91k shares, for US$220k. Donald Spring sold a total of 9.91k shares over the year at an average price of US$22.17. 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!
I will like Midland States Bancorp better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Midland States Bancorp
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. Midland States Bancorp insiders own about US$23m worth of shares. That equates to 4.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Midland States Bancorp Tell Us?
The stark truth for Midland States Bancorp is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Midland States Bancorp you should be aware of.
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 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com