Finance

Analyzing the Insider Data for Momo Inc. (MOMO)

Recent insider trends for Momo Inc. (NASDAQ:MOMO) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of MOMO, the data has a lot to say about how the stock might perform going forward.

Institutions own 19.67% of Momo Inc. (MOMO)’s shares. The total value of these holdings, in millions, is $2,367. Among active positions in the latest quarter, 173 holders increased their positions by a total of 29.36 million shares, 95 holders decreased the positions by a total of 26.91 million shares, and 16 holders held their positions. This works out to a net increase in ownership of 2.45 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 66 holders initiated new positions by a total of 6.3 million shares and 47 holders exited their positions by a total of 12.57 million shares. This nets out to a decrease of 6.27 million shares and is another bearish sign for MOMO.

Insider ownership increased by a total of 0 shares, which suggests that MOMO’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: and ownership increased by a net of 0 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. Momo Inc. (NASDAQ:MOMO)’s short interest is 11 million shares, or 10.30% of the float. This represents an increase of 11% 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.

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 MOMO. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that MOMO is a Strong buy, which implies that MOMO is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Momo Inc. (NASDAQ:MOMO) is undervalued.

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