Insider Buyers At Magnachip Semiconductor Recover Some Losses, But Still Down US$34k

Insiders who bought US$189.1k worth of Magnachip Semiconductor Corporation (NYSE:MX) stock in the last year have seen some of their losses recouped as the stock gained 14% last week. However, total losses seen by insiders are still US$34k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Magnachip Semiconductor

The Last 12 Months Of Insider Transactions At Magnachip Semiconductor

The CEO & Director Young-Joon Kim made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$5.61 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.58). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Magnachip Semiconductor insiders own 4.8% of the company, worth about US$7.2m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Magnachip Semiconductor Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Magnachip Semiconductor stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Magnachip Semiconductor (of which 1 is concerning!) you should know about.

But note: Magnachip Semiconductor may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.