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What Recent Ownership Trends Suggest About Time Warner Inc. (TWX)’s Future Performance

Recent insider trends for Time Warner Inc. (NYSE:TWX) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of TWX, the data has a lot to say about how the stock might perform going forward.

Institutions own 79.51% of Time Warner Inc. (TWX)’s shares. The total value of these holdings, in millions, is $56,088. Among active positions in the latest quarter, 413 holders increased their positions by a total of 52.6 million shares, 535 holders decreased the positions by a total of 56.43 million shares, and 189 holders held their positions. This works out to a net decrease in ownership of 3.84 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 73 holders initiated new positions by a total of 8.55 million shares and 82 holders exited their positions by a total of 6.33 million shares. This nets out to an increase of 2.22 million shares and is a bullish sign for TWX.

Insider ownership increased by a total of 0 shares, which suggests that TWX’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 1 buys and 13 sells, and ownership decreased by a net of 402952 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. Time Warner Inc. (NYSE:TWX)’s short interest is 13.39 million shares, or 1.73% of the float. This represents an increase of 16% in the number of shares being shorted compared to the previous reading, and implies that investors felt more 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 TWX is a Strong sell, which implies that TWX is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Time Warner Inc. (NYSE:TWX) is overvalued.

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