The President & COO of Magellan Health, Inc. (NASDAQ:MGLN), James Murray, Just Bought A Few More Shares
Investors who take an interest in Magellan Health, Inc. (NASDAQ:MGLN) should definitely note that the President & COO, James Murray, recently paid US$67.63 per share to buy US$304k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for Magellan Health
The Last 12 Months Of Insider Transactions At Magellan Health
In fact, the recent purchase by James Murray was the biggest purchase of Magellan Health shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$70.39 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was James Murray.
The chart below shows insider transactions (by 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!
Magellan Health is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Magellan Health
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Magellan Health insiders own 1.1% of the company, worth about US$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Magellan Health Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Magellan Health shares, given these transactions (along with notable insider ownership of the company). 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, Magellan Health has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.
But note: Magellan Health 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, but not derivative transactions.
Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
This article by Simply Wall St is general in nature. 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. Thank you for reading.
