Recent insider trends for Assured Guaranty Ltd. (NYSE:AGO) 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 AGO might perform in the future.
Institutions own 94.67% of Assured Guaranty Ltd. (AGO)’s shares. The total value of these holdings, in millions, is $3,907. Among active positions in the latest quarter, 143 holders increased their positions by a total of 7.41 million shares, 150 holders decreased the positions by a total of 11.04 million shares, and 22 holders held their positions. This works out to a net decrease in ownership of 3.63 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 38 holders initiated new positions by a total of 853422 shares and 40 holders exited their positions by a total of 2.03 million shares. This nets out to a decrease of 1.17 million shares and is another bearish sign for AGO.
In the last three months, insiders executed a total of 7 trades. 7 were sells. Insider ownership decreased by a total of 199724 shares, which suggests that AGO’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 15 buys and 23 sells, and ownership decreased by a net of 136579 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Assured Guaranty Ltd. (NYSE:AGO)’s short interest is 6.94 million shares, or 6.05% of the float. This represents an increase of 1% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that AGO is a buy, which implies that AGO 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 bearish. Technical indicators (also) suggest that Assured Guaranty Ltd. (NYSE:AGO) is undervalued.