Yahoo Finance Bullish Old Second Bancorp, Inc. (NASDAQ:OSBC) insiders filled their treasuries with US$1.3m worth of stock over last year
Multiple insiders secured a larger position in Old Second Bancorp, Inc. (NASDAQ:OSBC) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
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.
Check out our latest analysis for Old Second Bancorp
The Last 12 Months Of Insider Transactions At Old Second Bancorp
The insider Dennis Klaeser made the biggest insider purchase in the last 12 months. That single transaction was for US$504k worth of shares at a price of US$12.00 each. We do like to see buying, but this purchase was made at well below the current price of US$14.52. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 105.90k shares worth US$1.3m. On the other hand they divested 22.79k shares, for US$321k. In total, Old Second Bancorp insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Old Second Bancorp Insiders Are Selling The Stock
Over the last three months, we've seen notably more insider selling, than insider buying, at Old Second Bancorp. We note Independent Director William Skoglund cashed in US$131k worth of shares. On the flip side, Independent Lead Director Barry Finn spent US$57k on purchasing shares. Generally this level of net selling might be considered a bit bearish.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 5.5% of Old Second Bancorp shares, worth about US$35m. 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 Do The Old Second Bancorp Insider Transactions Indicate?
The stark truth for Old Second Bancorp is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Old Second Bancorp (2 shouldn't be ignored!) and we strongly recommend you look at these before investing.
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.
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.
