It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in MidWestOne Financial Group, Inc.'s (NASDAQ:MOFG) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for MidWestOne Financial Group

MidWestOne Financial Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President & COO Len Devaisher bought US$84k worth of shares at a price of US$31.00 per share. So it's clear an insider wanted to buy, at around the current price, which is US$31.01. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the MidWestOne Financial Group insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid US$283k for 9.74k shares. But insiders sold 4.00k shares worth US$119k. Overall, MidWestOne Financial Group insiders were net buyers during 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

MidWestOne Financial Group Insiders Bought Stock Recently

We saw some MidWestOne Financial Group insider buying shares in the last three months. CEO & Director Charles Funk shelled out US$29k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.3% of MidWestOne Financial Group shares, worth about US$41m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At MidWestOne Financial Group Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in MidWestOne Financial Group and we see no evidence to suggest they are worried about the future. 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 MidWestOne Financial Group you should be aware of, and 1 of these is concerning.

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.

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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