Yahoo Finance Possible Bearish Signals With Monster Beverage Insiders Disposing Stock
Many Monster Beverage Corporation (NASDAQ:MNST) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Monster Beverage
The Last 12 Months Of Insider Transactions At Monster Beverage
In the last twelve months, the biggest single sale by an insider was when the Director, Mark Hall, sold US$15m worth of shares at a price of US$58.55 per share. So we know that an insider sold shares at around the present share price of US$55.01. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year Monster Beverage insiders didn't buy any company stock. 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!
I will like Monster Beverage better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Monster Beverage Insiders Are Selling The Stock
The last three months saw significant insider selling at Monster Beverage. In total, Director Mark Hall sold US$15m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Monster Beverage Boast High Insider Ownership?
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. We usually like to see fairly high levels of insider ownership. It's great to see that Monster Beverage insiders own 0.3% of the company, worth about US$187m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Monster Beverage Tell Us?
An insider 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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. Case in point: We've spotted 1 warning sign for Monster Beverage you should be aware of.
Of course Monster Beverage 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.
