It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Magellan Financial Group Limited's (ASX:MFG) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Magellan Financial Group

Magellan Financial Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Andrew Formica bought AU$250k worth of shares at a price of AU$6.24 per share. We do like to see buying, but this purchase was made at well below the current price of AU$8.72. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Magellan Financial Group insiders bought shares during the last year, they didn't sell. They paid about AU$4.21 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!

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).

Insiders At Magellan Financial Group Have Bought Stock Recently

There was some insider buying at Magellan Financial Group over the last quarter. Independent Non-Executive Director Deborah Page shelled out AU$50k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Magellan Financial Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Magellan Financial Group insiders own about AU$50m worth of shares. That equates to 3.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.