Whilst it may not be a huge deal, we thought it was good to see that the Magnachip Semiconductor Corporation (NYSE:MX) Independent Director, Gilbert Nathan, recently bought US$74k worth of stock, for US$3.68 per share. Although the purchase is not a big one, increasing their shareholding by only 8.3%, it can be interpreted as a good sign.

See our latest analysis for Magnachip Semiconductor

The Last 12 Months Of Insider Transactions At Magnachip Semiconductor

Notably, that recent purchase by Gilbert Nathan is the biggest insider purchase of Magnachip Semiconductor shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.11. 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.

While Magnachip Semiconductor insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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).

Does Magnachip Semiconductor Boast High 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. From our data, it seems that Magnachip Semiconductor insiders own 4.8% of the company, worth about US$7.3m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Magnachip Semiconductor Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us 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. 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. For example - Magnachip Semiconductor has 1 warning sign we think you should be aware of.

Of course Magnachip Semiconductor 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.