Recent insider trends for General Motors Company (NYSE:GM) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on GM is anything to go by, investors should pay attention.
Institutions own 74.48% of General Motors Company (GM)’s shares. The total value of these holdings, in millions, is $45,489. Among active positions in the latest quarter, 414 holders increased their positions by a total of 85.38 million shares, 494 holders decreased the positions by a total of 100.62 million shares, and 129 holders held their positions. This works out to a net decrease in ownership of 15.24 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 98 holders initiated new positions by a total of 14.25 million shares and 74 holders exited their positions by a total of 9.23 million shares. This nets out to an increase of 5.02 million shares and is a bullish sign for GM.
In the last three months, insiders executed a total of 7 trades. 7 were sells. Insider ownership decreased by a total of 552298 shares, which suggests that GM’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 14 buys and 78 sells, and ownership decreased by a net of 1.57 million 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. General Motors Company (NYSE:GM)’s short interest is 37.36 million shares, or 2.86% of the float. This represents a decrease of -7% 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.
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 GM is a buy, which implies that GM 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 General Motors Company (NYSE:GM) is undervalued.