Finance

Are Platinum Group Metals Ltd. (PLG)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for Platinum Group Metals Ltd. (NYSE:PLG) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on PLG is anything to go by, investors should pay attention.

Institutions own 59.81% of Platinum Group Metals Ltd. (PLG)’s shares. The total value of these holdings, in millions, is $29. Among active positions in the latest quarter, 7 holders increased their positions by a total of 650781 shares, 14 holders decreased the positions by a total of 2.23 million shares, and 17 holders held their positions. This works out to a net decrease in ownership of 1.58 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 1 holders initiated new positions by a total of 301 shares and 5 holders exited their positions by a total of 265094 shares. This nets out to a decrease of 264793 shares and is another bearish sign for PLG.

Insider ownership increased by a total of 0 shares, which suggests that PLG’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. Platinum Group Metals Ltd. (NYSE:PLG)’s short interest is 6.59 million shares, or % of the float. This represents an increase of 6% 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.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for PLG. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PLG is a sell, which implies that PLG is expected to underperform 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 Platinum Group Metals Ltd. (NYSE:PLG) is overvalued.

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