Recent insider trends for American Airlines Group Inc. (NASDAQ:AAL) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of AAL, the data has a lot to say about how the stock might perform going forward.
Institutions own 81.30% of American Airlines Group Inc. (AAL)’s shares. The total value of these holdings, in millions, is $20,922. Among active positions in the latest quarter, 199 holders increased their positions by a total of 24.53 million shares, 300 holders decreased the positions by a total of 32.28 million shares, and 114 holders held their positions. This works out to a net decrease in ownership of 7.75 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 50 holders initiated new positions by a total of 5.06 million shares and 59 holders exited their positions by a total of 6.8 million shares. This nets out to a decrease of 1.74 million shares and is another bearish sign for AAL.
In the last three months, insiders executed a total of 7 trades. 7 were sells. Insider ownership decreased by a total of 466742 shares, which suggests that AAL’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 19 buys and 44 sells, and ownership decreased by a net of 630092 shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. American Airlines Group Inc. (NASDAQ:AAL)’s short interest is 19.44 million shares, or 4.29% of the float. This represents a decrease of -15% 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 AAL is a Strong buy, which implies that AAL 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 American Airlines Group Inc. (NASDAQ:AAL) is undervalued.