Trade Alert: The CEO, MD & Executive Director Of Magellan Financial Group Limited (ASX:MFG), Brett Cairns, Has Just Spent AU$623k Buying 1.1% More Shares

Investors who take an interest in Magellan Financial Group Limited (ASX:MFG) should definitely note that the CEO, MD & Executive Director, Brett Cairns, recently paid AU$47.95 per share to buy AU$623k worth of the stock. Although the purchase only increased their holding by 1.1%, it is still a solid purchase in our view.

See our latest analysis for Magellan Financial Group

The Last 12 Months Of Insider Transactions At Magellan Financial Group

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Paul Lewis, sold AU$9.0m worth of shares at a price of AU$60.13 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$47.49. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 15.03k shares worth AU$723k. On the other hand they divested 249.11k shares, for AU$15m. All up, insiders sold more shares in Magellan Financial Group than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Magellan Financial Group insiders own about AU$2.3b worth of shares (which is 25% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Magellan Financial Group Tell Us?

The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Magellan Financial Group and we suggest you have a look.

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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This article by Simply Wall St is general in nature. 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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