Potential MagnaChip Semiconductor Corporation (NYSE:MX) shareholders may wish to note that the Independent Director, Camillo Martino, recently bought US$111k worth of stock, paying US$11.05 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 15%.
The Last 12 Months Of Insider Transactions At MagnaChip Semiconductor
Notably, that recent purchase by Camillo Martino is the biggest insider purchase of MagnaChip Semiconductor shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$12.68. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the MagnaChip Semiconductor insider decided to buy shares at close to current prices. Camillo Martino was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, 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 that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does MagnaChip Semiconductor Boast High 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. We usually like to see fairly high levels of insider ownership. MagnaChip Semiconductor insiders own about US$11m worth of shares. That equates to 2.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The MagnaChip Semiconductor Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in MagnaChip Semiconductor shares, given these transactions (along with notable insider ownership of 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 3 warning signs for MagnaChip Semiconductor you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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