Recent insider trends for Ford Motor Company (NYSE:F) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of F, the data has some interesting implications for where the stock might be headed.
Institutions own 54.75% of Ford Motor Company (F)’s shares. The total value of these holdings, in millions, is $27,833. Among active positions in the latest quarter, 445 holders increased their positions by a total of 113.31 million shares, 544 holders decreased the positions by a total of 136.16 million shares, and 149 holders held their positions. This works out to a net decrease in ownership of 22.85 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 81 holders initiated new positions by a total of 38.34 million shares and 80 holders exited their positions by a total of 17.19 million shares. This nets out to an increase of 21.15 million shares and is a bullish sign for F.
In the last three months, insiders executed a total of 6 trades. 1 of these were buys and 5 were sells. Insider ownership decreased by a total of 49332 shares, which suggests that F’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 10 buys and 63 sells, and ownership decreased by a net of 1.31 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. Ford Motor Company (NYSE:F)’s short interest is 111.38 million shares, or 3.03% of the float. This represents a decrease of -10% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that F is a Strong buy, which implies that F 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 bearish. Technical indicators (also) suggest that Ford Motor Company (NYSE:F) is undervalued.