Anyone interested in Old Second Bancorp, Inc. (NASDAQ:OSBC) should probably be aware that the Independent Director, John Ladowicz, recently divested US$254k worth of shares in the company, at an average price of US$18.27 each. On the bright side, that sale was only 6.6% of their holding, so we doubt it's very meaningful, on its own.

The Last 12 Months Of Insider Transactions At Old Second Bancorp

In the last twelve months, the biggest single sale by an insider was when the Vice Chairman of the Board, Gary Collins, sold US$586k worth of shares at a price of US$14.57 per share. That means that an insider was selling shares at slightly below the current price (US$18.61). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 23% of Gary Collins's holding.

In total, Old Second Bancorp insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Old Second Bancorp

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.6% of Old Second Bancorp shares, worth about US$30m. 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 Old Second Bancorp Tell Us?

Unfortunately, there has been more insider selling of Old Second Bancorp stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Old Second Bancorp. Our analysis shows 2 warning signs for Old Second Bancorp (1 is a bit concerning!) and we strongly recommend you look at these before investing.

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 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.