Positive Signs As Multiple 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.

View our latest analysis for Metro Bank Holdings

The Last 12 Months Of Insider Transactions At Metro Bank Holdings

Over the last year, we can see that the biggest insider purchase was by insider Nicholas Winsor for UK£98k worth of shares, at about UK£0.98 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£1.00. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 129.00k shares worth UK£125k. On the other hand they divested 29.00k shares, for UK£27k. Overall, Metro Bank Holdings insiders were net buyers during the last year. 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!

Metro Bank Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Metro Bank Holdings Have Bought Stock Recently

There has been significantly more insider buying, than selling, at Metro Bank Holdings, over the last three months. Insiders spent UK£125k on shares. But we did see Chairman of the Board Robert Sharpe sell shares worth UK£27k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Metro Bank Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Metro Bank Holdings insiders own 1.3% of the company, worth about UK£8.5m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Metro Bank Holdings Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Metro Bank Holdings insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Metro Bank Holdings has 1 warning sign we think you should be aware of.

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.