Recent insider trends for Sirius XM Holdings Inc. (NASDAQ:SIRI) 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 SIRI, the data has some interesting implications for where the stock might be headed.
Institutions own 20.94% of Sirius XM Holdings Inc. (SIRI)’s shares. The total value of these holdings, in millions, is $5,140. Among active positions in the latest quarter, 194 holders increased their positions by a total of 66.7 million shares, 202 holders decreased the positions by a total of 136.39 million shares, and 143 holders held their positions. This works out to a net decrease in ownership of 69.69 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 51 holders initiated new positions by a total of 14.83 million shares and 46 holders exited their positions by a total of 7.93 million shares. This nets out to an increase of 6.9 million shares and is a bullish sign for SIRI.
In the last three months, insiders executed a total of 29 trades. 21 of these were buys and 8 were sells. Insider ownership decreased by a total of 296893 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.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Sirius XM Holdings Inc. (NASDAQ:SIRI)’s short interest is 223.13 million shares, or 16.31% of the float. This represents a decrease of -2% 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 SIRI is a Weak sell, which implies that SIRI 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 Sirius XM Holdings Inc. (NASDAQ:SIRI) is overvalued.