Yahoo Finance Insider Stock Buying Reaches US$9.50m On MSCI
Quite a few insiders have dramatically grown their holdings in MSCI Inc. (NYSE:MSCI) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for MSCI
MSCI Insider Transactions Over The Last Year
The Chairman & CEO Henry Fernandez made the biggest insider purchase in the last 12 months. That single transaction was for US$6.1m worth of shares at a price of US$470 each. So it's clear an insider wanted to buy, at around the current price, which is US$483. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for MSCI share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid US$9.5m for 20.50k shares. On the other hand they divested 12.28k shares, for US$6.0m. Overall, MSCI insiders were net buyers during the last year. 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!
MSCI is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At MSCI Have Bought Stock Recently
At MSCI,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, two insiders bought US$9.5m worth of shares in that time. But we did see Chief Human Resources Officer Scott Crum sell shares worth US$4.2m. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership Of MSCI
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. 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?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive 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. In terms of investment risks, we've identified 1 warning sign with MSCI and understanding it should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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