Pleasing Signs As A Number Of Insiders Buy Metro Bank Holdings Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Metro Bank Holdings PLC's (LON:MTRO) case, it's fantastic news for shareholders.

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.

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The Last 12 Months Of Insider Transactions At Metro Bank Holdings

The insider Nicholas Winsor made the biggest insider purchase in the last 12 months. That single transaction was for UK£98k worth of shares at a price of UK£0.98 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£1.34. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 229.00k shares worth UK£215k. On the other hand they divested 29.00k shares, for UK£27k. In the last twelve months there was more buying than selling by Metro Bank Holdings insiders. The chart below shows insider transactions (by companies and 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!

See our latest analysis for Metro Bank Holdings

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Metro Bank Holdings insiders own about UK£13m worth of shares. That equates to 1.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Metro Bank Holdings Tell Us?

It doesn't really mean much that no insider has traded Metro Bank Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Metro Bank Holdings and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Metro Bank Holdings that deserve your attention before buying any shares.

But note: Metro Bank Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.