Recent insider trends for Barrick Gold Corporation (NYSE:ABX) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of ABX, the data has some interesting implications for where the stock might be headed.
Institutions own 56.11% of Barrick Gold Corporation (ABX)’s shares. The total value of these holdings, in millions, is $10,742. Among active positions in the latest quarter, 176 holders increased their positions by a total of 73 million shares, 213 holders decreased the positions by a total of 100.81 million shares, and 96 holders held their positions. This works out to a net decrease in ownership of 27.81 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 40 holders initiated new positions by a total of 6.8 million shares and 50 holders exited their positions by a total of 16.41 million shares. This nets out to a decrease of 9.61 million shares and is another bearish sign for ABX.
In the last three months, insiders executed a total of 0 trades. 0 of these were buys and 0 were sells. Insider ownership increased by a total of 0 shares, which suggests that ABX’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 0 buys and 0 sells, and ownership increased by a net of 0 shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Barrick Gold Corporation (NYSE:ABX)’s short interest is 13.08 million shares, or 1.13% of the float. This represents a decrease of -2% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for ABX. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ABX is a sell, which implies that ABX is expected to underperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Barrick Gold Corporation (NYSE:ABX) is overvalued.