Recent insider trends for General Electric Company (NYSE:GE) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on GE is anything to go by, investors should pay attention.
Institutions own 55.98% of General Electric Company (GE)’s shares. The total value of these holdings, in millions, is $117,186. Among active positions in the latest quarter, 891 holders increased their positions by a total of 239.17 million shares, 1,158 holders decreased the positions by a total of 203.41 million shares, and 160 holders held their positions. This works out to a net increase in ownership of 35.76 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 87 holders initiated new positions by a total of 18.5 million shares and 102 holders exited their positions by a total of 21.56 million shares. This nets out to a decrease of 3.07 million shares and is another bearish sign for GE.
In the last three months, insiders executed a total of 25 trades. 6 of these were buys and 19 were sells. Insider ownership increased by a total of 16014 shares, which suggests that GE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 14 buys and 32 sells, and ownership decreased by a net of 382537 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. General Electric Company (NYSE:GE)’s short interest is 123.05 million shares, or % of the float. This represents an increase of 23% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that GE is a Strong sell, which implies that GE 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 General Electric Company (NYSE:GE) is overvalued.