Recent insider trends for Caesars Entertainment Corporation (NASDAQ:CZR) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how CZR might perform in the future.
Institutions own 48.71% of Caesars Entertainment Corporation (CZR)’s shares. The total value of these holdings, in millions, is $4,202. Among active positions in the latest quarter, 150 holders increased their positions by a total of 115.96 million shares, 73 holders decreased the positions by a total of 18.43 million shares, and 20 holders held their positions. This works out to a net increase in ownership of 97.53 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 85 holders initiated new positions by a total of 78.25 million shares and 25 holders exited their positions by a total of 5.56 million shares. This nets out to an increase of 72.69 million shares and is a bullish sign for CZR.
In the last three months, insiders executed a total of 16 trades. 1 of these were buys and 15 were sells. Insider ownership decreased by a total of 140.24 million shares, which suggests that CZR’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 17 buys and 48 sells, and ownership decreased by a net of 77.54 million 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. Caesars Entertainment Corporation (NASDAQ:CZR)’s short interest is 19.63 million shares, or % of the float. This represents a decrease of -7% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CZR is a Weak sell, which implies that CZR 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 bearish. Technical indicators (also) suggest that Caesars Entertainment Corporation (NASDAQ:CZR) is overvalued.