There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on May 10, MGP Ingredients Inc 's Vice President, Stephen J. Glaser, invested $20,325.00 into 300 shares of MGPI, for a cost per share of $67.75. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.
In trading on Monday, bargain hunters could buy shares of MGP Ingredients Inc (NASDAQ:MGPI) and achieve a cost basis 17.3% cheaper than Glaser, with shares changing hands as low as $56.02 per share. It should be noted that Glaser has collected $0.10/share in dividends since the time of their purchase, so they are currently down 17.2% on their purchase from a total return basis. MGP Ingredients Inc shares are currently trading down about 0.2% on the day. The chart below shows the one year performance of MGPI shares, versus its 200 day moving average:
Looking at the chart above, MGPI's low point in its 52 week range is $46.26 per share, with $100 as the 52 week high point — that compares with a last trade of $56.42. By comparison, below is a table showing the prices at which MGPI insider buying was recorded over the last six months:
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