Some MetLife, Inc. (NYSE:MET) shareholders may be a little concerned to see that the Executive VP and Head of Global Technology & Operations, Bill Pappas, recently sold a substantial US$2.0m worth of stock at a price of US$72.27 per share. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.
MetLife Insider Transactions Over The Last Year
Notably, that recent sale by Bill Pappas is the biggest insider sale of MetLife shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$73.27). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 32% of Bill Pappas's holding.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 MetLife
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. MetLife insiders own about US$118m worth of shares (which is 0.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The MetLife Insider Transactions Indicate?
An insider hasn't bought MetLife stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MetLife. Case in point: We've spotted 4 warning signs for MetLife you should be aware of.
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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.