Independent Director of Magnachip Semiconductor Picks Up 8.3% More Stock

Even if it's not a huge purchase, we think it was good to see that Gilbert Nathan, the Independent Director of Magnachip Semiconductor Corporation (NYSE:MX) recently shelled out US$74k to buy stock, at US$3.68 per share. However, it only increased their shares held by 8.3%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Magnachip Semiconductor

The Last 12 Months Of Insider Transactions At Magnachip Semiconductor

In fact, the recent purchase by Gilbert Nathan was the biggest purchase of Magnachip Semiconductor shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.11. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Magnachip Semiconductor insiders bought shares during the last year, they didn't sell. 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!

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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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Magnachip Semiconductor insiders own 4.8% of the company, worth about US$7.3m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Magnachip Semiconductor Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Magnachip Semiconductor insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Magnachip Semiconductor. While conducting our analysis, we found that Magnachip Semiconductor has 1 warning sign and it would be unwise to ignore it.

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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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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.