MSCI Inc. (NYSE:MSCI) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Henry Fernandez, recently bought a whopping US$3.0m worth of stock, at a 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

MSCI Insider Transactions Over The Last Year

Notably, that recent purchase by Chairman & CEO Henry Fernandez was not the only time they bought MSCI shares this year. They previously made an even bigger purchase of US$6.1m worth of shares at a price of US$470 per share. We do like to see buying, but this purchase was made at well below the current price of US$585. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 28.70k shares worth US$14m. But insiders sold 10.82k shares worth US$5.3m. In the last twelve months there was more buying than selling by MSCI insiders. 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!

MSCI is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that MSCI insiders own 3.3% of the company, worth about US$1.5b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About MSCI Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest MSCI insiders are well aligned, and quite possibly think the share price is too low. Nice! 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 1 warning sign for MSCI you should be aware of.

Of course MSCI may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.