Insider Buying: The MBIA Inc. (NYSE:MBI) CEO & Director Just Bought 4.4% More Shares

MBIA Inc. (NYSE:MBI) shareholders (or potential shareholders) will be happy to see that the CEO & Director, William Fallon, recently bought a whopping US$617k worth of stock, at a price of US$6.17. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.4%.

See our latest analysis for MBIA

MBIA Insider Transactions Over The Last Year

Notably, that recent purchase by William Fallon is the biggest insider purchase of MBIA shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$6.46. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. William Fallon was the only individual insider to buy during the last year.

Over the last year we saw more insider selling of MBIA shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like MBIA better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of MBIA

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. MBIA insiders own about US$42m worth of shares. That equates to 12% 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.

So What Do The MBIA Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by MBIA insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for MBIA you should be aware of, and 1 of them can't be ignored.

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.

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