Insider Buying: MSCI Chairman & CEO Bought US$3.0m Of Shares

Those following along with MSCI Inc. (NYSE:MSCI) will no doubt be intrigued by the recent purchase of shares by Henry Fernandez, Chairman & CEO of the company, who spent a stonking US$3.0m on stock at an average price of US$575. While that only increased their holding size by 0.2%, it is still a big swing by our standards.

View our latest analysis for MSCI

The Last 12 Months Of Insider Transactions At MSCI

Notably, that recent purchase by Chairman & CEO Henry Fernandez was not the only time they bought MSCI shares this year. Earlier in the year, they paid US$470 per share in a US$6.1m purchase. Even though the purchase was made at a significantly lower price than the recent price (US$585), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 28.70k shares worth US$14m. On the other hand they divested 10.82k shares, for US$5.3m. Overall, MSCI insiders were net buyers during 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does MSCI Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. MSCI insiders own 3.3% of the company, currently worth about US$1.5b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The MSCI Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about MSCI. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MSCI. Case in point: We've spotted 1 warning sign for MSCI you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

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.