Potential Magnachip Semiconductor Corporation (NYSE:MX) shareholders may wish to note that the CEO & Director, Young-Joon Kim, recently bought US$100k worth of stock, paying US$5.61 for each share. Although the purchase only increased their holding by 3.5%, it is still a solid purchase in our view.

Magnachip Semiconductor Insider Transactions Over The Last Year

Notably, that recent purchase by Young-Joon Kim is the biggest insider purchase of Magnachip Semiconductor shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.50). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Magnachip Semiconductor insiders may have bought shares in the last year, but they didn't sell any. They paid about US$7.00 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Magnachip Semiconductor insiders own about US$7.2m worth of shares (which is 3.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Magnachip Semiconductor Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Magnachip Semiconductor insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Magnachip Semiconductor. At Simply Wall St, we've found that Magnachip Semiconductor has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

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.