Henry Fernandez, CEO and Chairman of
MSCI (MSCI), recently bought 2,900 shares. The buy increased his stake by less than 1%, and came to a total cost of $1,777,119.
Fernandez was also the most recent buyer with a pickup of 13,000 shares for just over $6 million back in April. The company President and COO bought 7,500 on that same date, for just over $3.4 million. Otherwise, there have been two small insider sales in between.
Overall, MSCI insiders own 3.2% of shares.
The financial market support service provider is up 15% over the past year. That’s lagged the overall market’s returns, even at a time when investor interest has soared along with the stock market.
Operationally, revenues are up 16% and earnings are up 8%, about in-line with the stock’s performance. The real story is MSCI’s hefty 43% profit margin, which makes the stock worth a pickup for investors. That high profit margin means MSCI can grow a dividend or share buyback program over time.
Action to take: Shares have been in a steady uptrend since April, and that uptrend looks likely to continue with shares breaking to new highs. Momentum investors may like shares here, where they can also earn a 1% dividend.
For traders, the March 2025 $650 calls, last trading for about $23, could see mid-double-digit returns on a further rally into next year.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.