Recent insider trends for Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of SBGI, the data has some interesting implications for where the stock might be headed.
Institutions own 113.52% of Sinclair Broadcast Group, Inc. (SBGI)’s shares. The total value of these holdings, in millions, is $2,658. Among active positions in the latest quarter, 161 holders increased their positions by a total of 28.87 million shares, 102 holders decreased the positions by a total of 16.52 million shares, and 29 holders held their positions. This works out to a net increase in ownership of 12.35 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 56 holders initiated new positions by a total of 11.48 million shares and 39 holders exited their positions by a total of 6.09 million shares. This nets out to an increase of 5.39 million shares and is a bullish sign for SBGI.
In the last three months, insiders executed a total of 3 trades. 1 of these were buys and 2 were sells. Insider ownership decreased by a total of 1010 shares, which suggests that SBGI’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 16 buys and 35 sells, and ownership decreased by a net of 196377 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. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI)’s short interest is 13.17 million shares, or 19.87% of the float. This represents a decrease of -3% 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.
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 SBGI is a sell, which implies that SBGI 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 Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) is overvalued.