Chairman & CEO of MSCI Henry Fernandez Buys More Stock

Those following along with MSCI Inc. (NYSE:MSCI) will no doubt be intrigued by the recent purchase of shares by Henry Fernandez, Chairman & CEO of the company, who spent a stonking US$6.1m on stock at an average price of US$466. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.6%.

See our latest analysis for MSCI

MSCI Insider Transactions Over The Last Year

Notably, that recent purchase by Henry Fernandez is the biggest insider purchase of MSCI shares that we've seen in the last year. That implies that an insider found the current price of US$478 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for MSCI share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 20.50k shares for US$9.5m. On the other hand they divested 5.28k shares, for US$2.7m. Overall, MSCI insiders were net buyers during the last year. 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!

insider-trading-volume

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).

Insider Ownership Of MSCI

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. MSCI insiders own about US$1.2b worth of shares (which is 3.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About MSCI Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about MSCI. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MSCI. At Simply Wall St, we found 1 warning sign for MSCI that deserve your attention before buying any shares.

But note: MSCI 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.