Recent insider trends for Sirius XM Holdings Inc. (NASDAQ:SIRI) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of SIRI, the data has a lot to say about how the stock might perform going forward.
Institutions own 21.00% of Sirius XM Holdings Inc. (SIRI)’s shares. The total value of these holdings, in millions, is $5,542. Among active positions in the latest quarter, 210 holders increased their positions by a total of 72.54 million shares, 201 holders decreased the positions by a total of 154.24 million shares, and 128 holders held their positions. This works out to a net decrease in ownership of 81.7 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 63 holders initiated new positions by a total of 12.65 million shares and 43 holders exited their positions by a total of 14.3 million shares. This nets out to a decrease of 1.65 million shares and is another bearish sign for SIRI.
In the last three months, insiders executed a total of 53 trades. 21 of these were buys and 32 were sells. Insider ownership decreased by a total of 20.72 million shares, which suggests that SIRI’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 69 buys and 57 sells, and ownership decreased by a net of 24.71 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. Sirius XM Holdings Inc. (NASDAQ:SIRI)’s short interest is 242.49 million shares, or 17.73% of the float. This represents an increase of 2% 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.
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 SIRI. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SIRI is a buy, which implies that SIRI 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 Sirius XM Holdings Inc. (NASDAQ:SIRI) is undervalued.