Recent insider trends for Monsanto Company (NYSE:MON) 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 MON might perform in the future.
Institutions own 76.72% of Monsanto Company (MON)’s shares. The total value of these holdings, in millions, is $40,013. Among active positions in the latest quarter, 396 holders increased their positions by a total of 30.07 million shares, 487 holders decreased the positions by a total of 24.05 million shares, and 213 holders held their positions. This works out to a net increase in ownership of 6.02 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 80 holders initiated new positions by a total of 8.81 million shares and 67 holders exited their positions by a total of 4.76 million shares. This nets out to an increase of 4.05 million shares and is a bullish sign for MON.
In the last three months, insiders executed a total of 55 trades. 35 of these were buys and 20 were sells. Insider ownership increased by a total of 207632 shares, which suggests that MON’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 71 buys and 48 sells, and ownership decreased by a net of 212315 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Monsanto Company (NYSE:MON)’s short interest is 2.52 million shares, or 0.59% of the float. This represents a decrease of -25% 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 MON is a Weak sell, which implies that MON 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 Monsanto Company (NYSE:MON) is overvalued.