From what we can see, insiders were net buyers in Magyar Bancorp, Inc.'s (NASDAQ:MGYR ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

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.

Check out our latest analysis for Magyar Bancorp

Magyar Bancorp Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Michael Lombardi for US$141k worth of shares, at about US$9.57 per share. Even though the purchase was made at a significantly lower price than the recent price (US$10.90), we still think insider buying is a positive. 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.

Michael Lombardi purchased 35.67k shares over the year. The average price per share was US$9.76. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Magyar Bancorp is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Magyar Bancorp insiders own about US$8.2m worth of shares (which is 11% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Magyar Bancorp Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Magyar Bancorp stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Magyar Bancorp. At Simply Wall St, we found 2 warning signs for Magyar Bancorp that deserve your attention before buying any shares.

Of course Magyar Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.