Independent Non Executive Chairman of the Board of Magnachip Semiconductor Picks Up 36% More Stock
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. That purchase might not be huge but it did increase their holding by 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. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.99). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Magnachip Semiconductor insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Magnachip Semiconductor Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. 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 Does This Data Suggest About Magnachip Semiconductor Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Magnachip Semiconductor insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Magnachip Semiconductor has 1 warning sign we think you should be aware of.
But note: Magnachip Semiconductor may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.
