Some Metropolitan Bank Holding Corp. (NYSE:MCB) shareholders may be a little concerned to see that the Independent Director, Robert Patent, recently sold a substantial US$923k worth of stock at a price of US$92.29 per share. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Metropolitan Bank Holding

Notably, that recent sale by Independent Director Robert Patent was not the only time they sold Metropolitan Bank Holding shares this year. Earlier in the year, they fetched US$96.16 per share in a -US$1.4m sale. That means that an insider was selling shares at around the current price of US$94.40. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last twelve months insiders purchased 3.17k shares for US$253k. On the other hand they divested 60.59k shares, for US$5.3m. Over the last year we saw more insider selling of Metropolitan Bank Holding shares, than buying. The average sell price was around US$88.20. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Metropolitan Bank Holding

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.0% of Metropolitan Bank Holding shares, worth about US$46m. 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 Metropolitan Bank Holding Insiders?

The insider sales have outweighed the insider buying, at Metropolitan Bank Holding, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Metropolitan Bank Holding is growing earnings. 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. In terms of investment risks, we've identified 2 warning signs with Metropolitan Bank Holding and understanding them should be part of your investment process.

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.

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.