We wouldn’t blame Monster Beverage Corporation (NASDAQ:MNST) shareholders if they were a little worried about the fact that Emelie Tirre, the President of the Americas recently netted about US$3.8m selling shares at an average price of US$80.34. That diminished their holding by a very significant 88%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Monster Beverage
In the last twelve months, the biggest single sale by an insider was when the Director, Mark Hall, sold US$13m worth of shares at a price of US$67.30 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$83.32. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was only 22% of Mark Hall’s holding.
Monster Beverage insiders didn’t buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Monster Beverage
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Monster Beverage insiders own 1.7% of the company, currently worth about US$731m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Monster Beverage Tell Us?
Insiders sold Monster Beverage shares recently, but they didn’t buy any. And even if we look at the last year, we didn’t see any purchases. But since Monster Beverage is profitable and growing, we’re not too worried by this. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. 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. At Simply Wall St, we found 1 warning sign for Monster Beverage that deserve your attention before buying any shares.
But note: Monster Beverage 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.
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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.
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