Finance

Analyzing the Insider Data for Sibanye Gold Limited (SBGL)

Recent insider trends for Sibanye Gold Limited (NYSE:SBGL) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. SBGL’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 17.13% of Sibanye Gold Limited (SBGL)’s shares. The total value of these holdings, in millions, is $415. Among active positions in the latest quarter, 53 holders increased their positions by a total of 12.34 million shares, 62 holders decreased the positions by a total of 6.46 million shares, and 12 holders held their positions. This works out to a net increase in ownership of 5.88 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 25 holders initiated new positions by a total of 4.53 million shares and 22 holders exited their positions by a total of 1.25 million shares. This nets out to an increase of 3.28 million shares and is a bullish sign for SBGL.

Insider ownership increased by a total of 0 shares, which suggests that SBGL’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: 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. Sibanye Gold Limited (NYSE:SBGL)’s short interest is 16.01 million shares, or 3.69% 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 SBGL. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SBGL is a Weak sell, which implies that SBGL is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Sibanye Gold Limited (NYSE:SBGL) is overvalued.

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