Recent insider trends for First Majestic Silver Corp. (NYSE:AG) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. AG’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 29.41% of First Majestic Silver Corp. (AG)’s shares. The total value of these holdings, in millions, is $251. Among active positions in the latest quarter, 57 holders increased their positions by a total of 4.74 million shares, 54 holders decreased the positions by a total of 4.55 million shares, and 20 holders held their positions. This works out to a net increase in ownership of 191105 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 18 holders initiated new positions by a total of 944776 shares and 14 holders exited their positions by a total of 599470 shares. This nets out to an increase of 345306 shares and is a bullish sign for AG.
Insider ownership increased by a total of 0 shares, which suggests that AG’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.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. First Majestic Silver Corp. (NYSE:AG)’s short interest is 21.56 million shares, or 13.40% of the float. This represents an increase of 12% 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 AG. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that AG is a Strong sell, which implies that AG 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 First Majestic Silver Corp. (NYSE:AG) is overvalued.