Recent insider trends for Eldorado Gold Corporation (NYSE:EGO) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on EGO is anything to go by, investors should pay attention.
Institutions own 52.92% of Eldorado Gold Corporation (EGO)’s shares. The total value of these holdings, in millions, is $534. Among active positions in the latest quarter, 75 holders increased their positions by a total of 65.27 million shares, 81 holders decreased the positions by a total of 82.23 million shares, and 39 holders held their positions. This works out to a net decrease in ownership of 16.96 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 15 holders initiated new positions by a total of 3.3 million shares and 33 holders exited their positions by a total of 32.86 million shares. This nets out to a decrease of 29.56 million shares and is another bearish sign for EGO.
Insider ownership increased by a total of 0 shares, which suggests that EGO’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 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. Eldorado Gold Corporation (NYSE:EGO)’s short interest is 30.04 million shares, or 4.21% of the float. This represents an increase of 37% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that EGO is a Weak sell, which implies that EGO 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 Eldorado Gold Corporation (NYSE:EGO) is overvalued.