Mettler-Toledo International Insiders Sell US$11m Of Stock, Possibly Signalling Caution
Simply Wall St · 09/15 11:57

Over the past year, many Mettler-Toledo International Inc. (NYSE:MTD) insiders sold a significant stake in the company which may have piqued investors' interest. 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, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Mettler-Toledo International

The Last 12 Months Of Insider Transactions At Mettler-Toledo International

The insider, Olivier Filliol, made the biggest insider sale in the last 12 months. That single transaction was for US$6.8m worth of shares at a price of US$1,483 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$1,158. So it may not tell us anything about how insiders feel about the current share price.

Mettler-Toledo International insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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NYSE:MTD Insider Trading Volume September 15th 2023

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Mettler-Toledo International insiders own 1.5% of the company, worth about US$370m. 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 Does This Data Suggest About Mettler-Toledo International Insiders?

It doesn't really mean much that no insider has traded Mettler-Toledo International shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Mettler-Toledo International insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Mettler-Toledo International that deserve your attention before buying any shares.

Of course Mettler-Toledo International 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.