Recent insider trends for General Motors Company (NYSE:GM) 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 GM, the data has some interesting implications for where the stock might be headed.
Institutions own 76.51% of General Motors Company (GM)’s shares. The total value of these holdings, in millions, is $46,360. Among active positions in the latest quarter, 433 holders increased their positions by a total of 90.98 million shares, 464 holders decreased the positions by a total of 95.18 million shares, and 134 holders held their positions. This works out to a net decrease in ownership of 4.2 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 90 holders initiated new positions by a total of 27.7 million shares and 76 holders exited their positions by a total of 6.63 million shares. This nets out to an increase of 21.07 million shares and is a bullish sign for GM.
In the last three months, insiders executed a total of 15 trades. 1 of these were buys and 14 were sells. Insider ownership decreased by a total of 977144 shares, which suggests that GM’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 14 buys and 90 sells, and ownership decreased by a net of 1.51 million shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. General Motors Company (NYSE:GM)’s short interest is 36.78 million shares, or 2.81% of the float. This represents a decrease of -13% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that GM is a Weak buy, which implies that GM 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 General Motors Company (NYSE:GM) is undervalued.