Recent insider trends for Glu Mobile Inc. (NASDAQ:GLUU) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of GLUU, the data has a lot to say about how the stock might perform going forward.
Institutions own 35.15% of Glu Mobile Inc. (GLUU)’s shares. The total value of these holdings, in millions, is $181. Among active positions in the latest quarter, 52 holders increased their positions by a total of 11.54 million shares, 38 holders decreased the positions by a total of 3.69 million shares, and 23 holders held their positions. This works out to a net increase in ownership of 7.85 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 17 holders initiated new positions by a total of 1.91 million shares and 13 holders exited their positions by a total of 1.98 million shares. This nets out to a decrease of 74447 shares and is another bearish sign for GLUU.
In the last three months, insiders executed a total of 19 trades. 7 of these were buys and 12 were sells. Insider ownership decreased by a total of 412958 shares, which suggests that GLUU’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 38 buys and 37 sells, and ownership increased by a net of 323705 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. Glu Mobile Inc. (NASDAQ:GLUU)’s short interest is 4.62 million shares, or 4.42% of the float. This represents a decrease of -59% 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 GLUU. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that GLUU is a Strong buy, which implies that GLUU 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 Glu Mobile Inc. (NASDAQ:GLUU) is undervalued.