Recent insider trends for General Electric Company (NYSE:GE) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on GE is anything to go by, investors should pay attention.
Institutions own 55.97% of General Electric Company (GE)’s shares. The total value of these holdings, in millions, is $91,884. Among active positions in the latest quarter, 781 holders increased their positions by a total of 365.15 million shares, 1,205 holders decreased the positions by a total of 268.87 million shares, and 157 holders held their positions. This works out to a net increase in ownership of 96.28 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 79 holders initiated new positions by a total of 23.44 million shares and 123 holders exited their positions by a total of 24.01 million shares. This nets out to a decrease of 564831 shares and is another bearish sign for GE.
In the last three months, insiders executed a total of 6 trades. 4 of these were buys and 2 were sells. Insider ownership increased by a total of 3.04 million shares, which suggests that GE’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 17 buys and 28 sells, and ownership increased by a net of 2.72 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. General Electric Company (NYSE:GE)’s short interest is 112.84 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 GE. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that GE is a Weak buy, which implies that GE 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 General Electric Company (NYSE:GE) is undervalued.