Even if it's not a huge purchase, we think it was good to see that Camillo Martino, the Independent Non Executive Chairman of the Board of Magnachip Semiconductor Corporation (NYSE:MX) recently shelled out US$68k to buy stock, at US$6.80 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 36%.
See our latest analysis for Magnachip Semiconductor
Magnachip Semiconductor Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Young-Joon Kim bought US$91k worth of shares at a price of US$8.36 per share. That means that even when the share price was higher than US$6.99 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Magnachip Semiconductor insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Magnachip Semiconductor is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Magnachip Semiconductor insiders own about US$7.9m worth of shares (which is 3.0% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Magnachip Semiconductor Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Magnachip Semiconductor stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Magnachip Semiconductor you should know about.
Of course Magnachip Semiconductor 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 of direct interests only, but not derivative transactions or indirect interests.
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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.