Magnachip Semiconductor Corporation (NYSE:MX) shareholders (or potential shareholders) will be happy to see that the Independent Director, Cristiano Amoruso, recently bought a whopping US$1.4m worth of stock, at a price of US$2.41. Not only is that a big swing, but it increased their holding size by 21%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Magnachip Semiconductor
Notably, that recent purchase by Independent Director Cristiano Amoruso was not the only time they bought Magnachip Semiconductor shares this year. Earlier in the year, they paid US$3.29 per share in a US$7.6m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.82). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Cristiano Amoruso was also the biggest seller.
Happily, we note that in the last year insiders paid US$9.6m for 3.12m shares. But insiders sold 378.25k shares worth US$841k. In total, Magnachip Semiconductor insiders bought more than they sold over the last year. 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!
See our latest analysis for Magnachip Semiconductor
Magnachip Semiconductor is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Magnachip Semiconductor insiders own 15% of the company, worth about US$16m. 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 Magnachip Semiconductor Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Magnachip Semiconductor we think they are probably pretty confident of 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. To that end, you should learn about the 2 warning signs we've spotted with Magnachip Semiconductor (including 1 which is a bit concerning).
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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