Trade Alert: Independent Director Of Metropolitan Bank Holding Katrina Robinson Has Sold Stock

We'd be surprised if Metropolitan Bank Holding Corp. (NYSE:MCB) shareholders haven't noticed that the Independent Director, Katrina Robinson, recently sold US$215k worth of stock at US$60.45 per share. Equally important, that sale actually reduced their holding by a full 59% which hardly makes us feel bullish about the stock.

See our latest analysis for Metropolitan Bank Holding

The Last 12 Months Of Insider Transactions At Metropolitan Bank Holding

In the last twelve months, the biggest single sale by an insider was when the President, Mark DeFazio, sold US$5.1m worth of shares at a price of US$55.95 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$58.94. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 can see that insiders have bought 2.73k shares worth US$114k. On the other hand they divested 104.90k shares, for US$5.8m. Over the last year we saw more insider selling of Metropolitan Bank Holding shares, than buying. 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!

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.

Insider Ownership Of Metropolitan Bank Holding

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Metropolitan Bank Holding insiders own 5.0% of the company, worth about US$32m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Metropolitan Bank Holding Insiders?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Metropolitan Bank Holding. For example - Metropolitan Bank Holding has 1 warning sign we think you should be aware of.

Of course Metropolitan Bank Holding may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.