MPB

Mid Penn Bancorp ($MPB): The Mystery Behind 66 Purchases Out of 67 Insider Trades

10/01/2025 18:59

Mid Penn Bancorp ($MPB), a Pennsylvania-based regional bank, has exhibited an extraordinarily rare insider trading pattern that warrants investor attention. Over approximately 15 months from June 2024 to September 2025, 66 out of 67 recorded insider transactions were purchases, with only one sale by director Brian Hudson. This overwhelming buy-to-sell ratio contrasts sharply with typical insider trading patterns where buys and sells are more balanced. Mid Penn Bancorp, established in 1868, is a traditional regional bank serving central Pennsylvania with personal and commercial banking, wealth management, and insurance services. Currently classified as a small-cap stock with a market capitalization of approximately $659 million, the company operates branch networks across key counties including Dauphin, Cumberland, and York. The bank emphasizes community-focused personalized services and local decision-making as its core strengths. The most notable event occurred on November 1, 2024, when 14 executives collectively purchased $730,000 worth of company stock in a single day. Director Matthew De Soto led the charge with $540,000, followed by Albert Evans with $250,000 and John Noone with $148,000. Such coordinated insider buying typically signals extreme management confidence in the company's future prospects. The insiders' conviction appears well-founded given the company's aggressive M&A strategy. Following the $127 million acquisition of William Penn Bancorporation in November 2024, the company announced in September 2025 the $101 million acquisition of 1st Colonial Bancorp, along with the purchase of Cumberland Advisors, a 52-year-old investment advisory firm. These moves represent strategic expansion beyond traditional Pennsylvania roots into New Jersey and Florida markets. Financially, the company demonstrates stability with recent quarterly EPS of $0.70 beating consensus estimates of $0.69, and revenue of $54.35 million exceeding expectations of $54.20 million. With approximately $347 million in cash reserves, the company maintains sufficient liquidity for additional acquisitions. The annual dividend yield of 2.72% reflects consistent shareholder return policies. Stock performance shows the company trading at $30.71 as of late September 2025, recovering from a March-April correction that brought shares down to the mid-$20s. The current price-to-book ratio of 0.87 suggests relative undervaluation compared to book value, presenting potential upside opportunity. Investors should monitor the company's ROE of 6.59%, which trails the regional bank average of 8-15%. However, consistent earnings improvements and analyst projections of 12% EPS growth next year provide optimistic counterpoints. The combination of overwhelming insider buying signals, aggressive growth strategy, and substantial cash reserves positions the company for potential medium to long-term appreciation, though execution of M&A integration will be critical for realizing this potential.