What Happened?
Shares of food and beverage supplier MGP Ingredients (NASDAQ:MGPI) fell 3.1% in the morning session after a director, Karen Seaberg, disclosed the sale of a significant amount of company stock.
According to regulatory filings, Seaberg sold shares worth a total of over $7.5 million in multiple transactions between December 8 and December 10. One particular sale involved 166,668 shares, which represented nearly 59% of her holdings in that class of stock. Large stock sales by company insiders can sometimes worry investors. Such moves can be seen as a signal of an insider's reduced confidence in the company's near-term prospects, leading to negative sentiment in the market.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy MGP Ingredients? Access our full analysis report here.
What Is The Market Telling Us
MGP Ingredients’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
MGP Ingredients is down 34.8% since the beginning of the year, and at $25.55 per share, it is trading 45.2% below its 52-week high of $46.63 from December 2024. Investors who bought $1,000 worth of MGP Ingredients’s shares 5 years ago would now be looking at an investment worth $558.10.
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