Recent insider trends for World Wrestling Entertainment, Inc. (NYSE:WWE) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. WWE’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 97.73% of World Wrestling Entertainment, Inc. (WWE)’s shares. The total value of these holdings, in millions, is $884. Among active positions in the latest quarter, 76 holders increased their positions by a total of 4.48 million shares, 48 holders decreased the positions by a total of 4.15 million shares, and 35 holders held their positions. This works out to a net increase in ownership of 325125 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 11 holders initiated new positions by a total of 1.26 million shares and 17 holders exited their positions by a total of 1.62 million shares. This nets out to a decrease of 364466 shares and is another bearish sign for WWE.
In the last three months, insiders executed a total of 22 trades. 6 of these were buys and 16 were sells. Insider ownership decreased by a total of 470409 shares, which suggests that WWE’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 36 buys and 20 sells, and ownership increased by a net of 297312 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. World Wrestling Entertainment, Inc. (NYSE:WWE)’s short interest is 5.38 million shares, or 14.31% of the float. This represents an increase of 0% 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 WWE is a Weak buy, which implies that WWE 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 World Wrestling Entertainment, Inc. (NYSE:WWE) is undervalued.