President Mark DeFazio Sold A Bunch Of Shares In Metropolitan Bank Holding

We wouldn't blame Metropolitan Bank Holding Corp. (NYSE:MCB) shareholders if they were a little worried about the fact that Mark DeFazio, the President recently netted about US$2.9m selling shares at an average price of US$65.43. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.

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Metropolitan Bank Holding Insider Transactions Over The Last Year

Notably, that recent sale by President Mark DeFazio was not the only time they sold Metropolitan Bank Holding shares this year. Earlier in the year, they fetched US$55.95 per share in a -US$5.1m sale. That means that an insider was selling shares at slightly below the current price (US$63.98). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 47% of Mark DeFazio's holding.

Over the last year we saw more insider selling of Metropolitan Bank Holding shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Metropolitan Bank Holding

I will like Metropolitan Bank Holding better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Metropolitan Bank Holding Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Metropolitan Bank Holding insiders own 5.5% of the company, worth about US$37m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Metropolitan Bank Holding Insider Transactions Indicate?

Insiders haven't bought Metropolitan Bank Holding stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Metropolitan Bank Holding that deserve your attention before buying any shares.

But note: Metropolitan Bank Holding 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.