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MediaAlpha, Inc. (NYSE:MAX) insider upped their holding by 42% earlier this year

From what we can see, insiders were net buyers in MediaAlpha, Inc.'s (NYSE:MAX ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for MediaAlpha

MediaAlpha Insider Transactions Over The Last Year

The CFO & Treasurer Patrick Thompson made the biggest insider purchase in the last 12 months. That single transaction was for US$110k worth of shares at a price of US$11.03 each. That means that even when the share price was higher than US$10.30 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Patrick Thompson.

Patrick Thompson purchased 35.00k shares over the year. The average price per share was US$10.12. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

MediaAlpha 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 MediaAlpha Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. MediaAlpha insiders own about US$66m worth of shares. That equates to 10% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At MediaAlpha Tell Us?

It doesn't really mean much that no insider has traded MediaAlpha shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in MediaAlpha and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MediaAlpha. When we did our research, we found 4 warning signs for MediaAlpha (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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