Recent insider trends for Momo Inc. (NASDAQ:MOMO) 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 MOMO might perform in the future.
Institutions own 19.29% of Momo Inc. (MOMO)’s shares. The total value of these holdings, in millions, is $2,167. Among active positions in the latest quarter, 156 holders increased their positions by a total of 21.03 million shares, 123 holders decreased the positions by a total of 31.57 million shares, and 19 holders held their positions. This works out to a net decrease in ownership of 10.55 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 66 holders initiated new positions by a total of 6.24 million shares and 65 holders exited their positions by a total of 11.21 million shares. This nets out to a decrease of 4.97 million shares and is another bearish sign for MOMO.
Insider ownership increased by a total of 0 shares, which suggests that MOMO’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.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Momo Inc. (NASDAQ:MOMO)’s short interest is 10.9 million shares, or 10.21% of the float. This represents a decrease of -1% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for MOMO. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that MOMO is a buy, which implies that MOMO is expected to outperform 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 Momo Inc. (NASDAQ:MOMO) is undervalued.