Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of MGE Energy, Inc. (NASDAQ:MGEE), it sends a favourable message to the company's 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 MGE Energy

The Last 12 Months Of Insider Transactions At MGE Energy

The Independent Director James Berbee made the biggest insider purchase in the last 12 months. That single transaction was for US$80k worth of shares at a price of US$74.86 each. So it's clear an insider wanted to buy, at around the current price, which is US$75.94. 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. 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 MGE Energy insiders decided to buy shares at close to current prices.

In the last twelve months MGE Energy insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

MGE Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

MGE Energy Insiders Bought Stock Recently

We saw some MGE Energy insider buying shares in the last three months. Independent Director James Berbee bought US$28k worth of shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does MGE Energy Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that MGE Energy insiders own 0.2% of the company, worth about US$5.2m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About MGE Energy Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if MGE Energy insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for MGE Energy you should be aware of.

Of course MGE Energy 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.

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.

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