Recent insider trends for Hertz Global Holdings, Inc. (NYSE:HTZ) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on HTZ is anything to go by, investors should pay attention.
Institutions own 127.36% of Hertz Global Holdings, Inc. (HTZ)’s shares. The total value of these holdings, in millions, is $2,058. Among active positions in the latest quarter, 101 holders increased their positions by a total of 25.23 million shares, 114 holders decreased the positions by a total of 15.71 million shares, and 23 holders held their positions. This works out to a net increase in ownership of 9.52 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 38 holders initiated new positions by a total of 5.46 million shares and 53 holders exited their positions by a total of 6.82 million shares. This nets out to a decrease of 1.36 million shares and is another bearish sign for HTZ.
In the last three months, insiders executed a total of 3 trades. 2 of these were buys and 1 were sells. Insider ownership increased by a total of 5852 shares, which suggests that HTZ’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 11 buys and 6 sells, and ownership increased by a net of 78036 shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Hertz Global Holdings, Inc. (NYSE:HTZ)’s short interest is 22.02 million shares, or % of the float. This represents a decrease of -7% 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 HTZ is a Strong sell, which implies that HTZ 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 bullish. Technical indicators (also) suggest that Hertz Global Holdings, Inc. (NYSE:HTZ) is overvalued.