Potential Merchants Bancorp (NASDAQ:MBIN) shareholders may wish to note that the President & CEO of Merchants Capital Corp, Michael Dury, recently bought US$269k worth of stock, paying US$44.82 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 7.1%.

The Last 12 Months Of Insider Transactions At Merchants Bancorp

The Vice Chairman, Randall Rogers, made the biggest insider sale in the last 12 months. That single transaction was for US$7.7m worth of shares at a price of US$32.18 each. That means that even when the share price was below the current price of US$40.81, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 7.4% of Randall Rogers's holding.

Over the last year we saw more insider selling of Merchants Bancorp shares, than buying. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Merchants Bancorp Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Merchants Bancorp insiders own 38% of the company, worth about US$714m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Merchants Bancorp Tell Us?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that Merchants Bancorp insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Merchants Bancorp (1 shouldn't be ignored) you should be aware of.

Of course Merchants Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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