Bullish insiders at Metro Bank PLC (LON:MTRO) loaded up on UK£1.1m of stock earlier this year

Quite a few insiders have dramatically grown their holdings in Metro Bank PLC (LON:MTRO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Metro Bank

The Last 12 Months Of Insider Transactions At Metro Bank

The CEO & Director Daniel Frumkin made the biggest insider purchase in the last 12 months. That single transaction was for UK£1.1m worth of shares at a price of UK£0.60 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£1.06. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Metro Bank insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Metro Bank insiders own 1.6% of the company, worth about UK£2.8m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Metro Bank Insiders?

It doesn't really mean much that no insider has traded Metro Bank shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Metro Bank stock. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Metro Bank.

Of course Metro Bank 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, but not derivative transactions.

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.

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