This Insider Has Just Sold Shares In Monster Beverage

Some Monster Beverage Corporation (NASDAQ:MNST) shareholders may be a little concerned to see that the Chief Financial Officer, Thomas Kelly, recently sold a substantial US$615k worth of stock at a price of US$87.81 per share. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.

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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 Chief Strategy Officer, Emelie Tirre, sold US$2.2m worth of shares at a price of US$73.31 per share. That means that even when the share price was below the current price of US$88.54, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 32% of Emelie Tirre's stake.

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!

Check out our latest analysis for Monster Beverage

I will like Monster Beverage better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Monster Beverage insiders own 0.4% of the company, worth about US$358m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Monster Beverage Insiders?

An insider hasn't bought Monster Beverage stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Monster Beverage is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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.

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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.