Recent insider trends for xG Technology, Inc. (NASDAQ:XGTI) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how XGTI might perform in the future.
Institutions own 03.15% of xG Technology, Inc. (XGTI)’s shares. The total value of these holdings, in millions, is $1. Among active positions in the latest quarter, 11 holders increased their positions by a total of 305732 shares, 3 holders decreased the positions by a total of 358498 shares, and 4 holders held their positions. This works out to a net decrease in ownership of 52766 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 7 holders initiated new positions by a total of 216317 shares and 3 holders exited their positions by a total of 358498 shares. This nets out to a decrease of 142181 shares and is another bearish sign for XGTI.
In the last three months, insiders executed a total of 10 trades. 10 of these were buys. Insider ownership increased by a total of 93026 shares, which suggests that XGTI’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 44 buys and 3 sells, and ownership increased by a net of 428307 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. xG Technology, Inc. (NASDAQ:XGTI)’s short interest is 1.46 million shares, or 22.10% of the float. This represents an increase of 10% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for XGTI. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that XGTI is a Weak buy, which implies that XGTI 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 bullish. Technical indicators (also) suggest that xG Technology, Inc. (NASDAQ:XGTI) is undervalued.