Recent insider trends for MBIA Inc. (NYSE:MBI) 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 MBI might perform in the future.
Institutions own 131.27% of MBIA Inc. (MBI)’s shares. The total value of these holdings, in millions, is $931. Among active positions in the latest quarter, 80 holders increased their positions by a total of 17.31 million shares, 75 holders decreased the positions by a total of 13.21 million shares, and 27 holders held their positions. This works out to a net increase in ownership of 4.1 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 33 holders initiated new positions by a total of 7.96 million shares and 21 holders exited their positions by a total of 1.21 million shares. This nets out to an increase of 6.75 million shares and is a bullish sign for MBI.
In the last three months, insiders executed a total of 4 trades. 4 of these were buys. Insider ownership increased by a total of 50429 shares, which suggests that MBI’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 23 buys and 11 sells, and ownership decreased by a net of 1.13 million 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. MBIA Inc. (NYSE:MBI)’s short interest is 39.81 million shares, or % of the float. This represents a decrease of -6% 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.
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 MBI. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that MBI is a sell, which implies that MBI 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 MBIA Inc. (NYSE:MBI) is overvalued.