We wouldn't blame Monster Beverage Corporation (NASDAQ:MNST) shareholders if they were a little worried about the fact that Guy Carling, the Chief Executive Officer for EMEA & OSP recently netted about US$1.7m selling shares at an average price of US$90.90. That's a big disposal, and it decreased their holding size by 46%, which is notable but not too bad.

Monster Beverage Insider Transactions Over The Last Year

The Chief Strategy Officer, Emelie Tirre, made the biggest insider sale in the last 12 months. That single transaction was for US$2.2m worth of shares at a price of US$73.31 each. That means that an insider was selling shares at slightly below the current price (US$92.83). 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. It is worth noting that this sale was only 32% of Emelie Tirre's holding.

Insiders in Monster Beverage didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Monster Beverage insiders own 0.2% of the company, currently worth about US$208m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Monster Beverage Insiders?

Insiders sold Monster Beverage shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Monster Beverage.

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 of direct interests only, but not derivative transactions or indirect interests.

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.