Yahoo Finance Ingredion Incorporated (NYSE:INGR) may have lost US$213m in value but insiders who invested last year have seen gains of around US$20k to date
Insiders who purchased Ingredion Incorporated (NYSE:INGR) shares in the past 12 months are unlikely to be deeply impacted by the stock's 3.4% decline over the past week. Even after accounting for the recent loss, the US$430k worth of stock purchased by them is now worth US$450k or in other words, their investment continues to give good returns.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Ingredion
Ingredion Insider Transactions Over The Last Year
The Senior VP of Global Operations & Chief Supply Chain Officer Eric Seip made the biggest insider purchase in the last 12 months. That single transaction was for US$430k worth of shares at a price of US$85.90 each. That implies that an insider found the current price of US$89.90 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Ingredion share holders is that an insider was buying at near the current price. Eric Seip was the only individual insider to buy during the last year.
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!
Ingredion is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Are Ingredion Insiders Buying Or Selling?
In the last three months company insiders divested US$178 worth of stock. That is not a lot. The net selling is so small that it's hard to draw any conclusions from these recent transactions.
Does Ingredion Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ingredion insiders own about US$184m worth of shares (which is 3.1% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Ingredion Tell Us?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Ingredion insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ingredion. For example, Ingredion has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
Of course Ingredion 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, but not derivative transactions.
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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.
