Recent insider trends for Zillow Group, Inc. (NASDAQ:Z) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how Z might perform in the future.
Institutions own 87.77% of Zillow Group, Inc. (Z)’s shares. The total value of these holdings, in millions, is $4,959. Among active positions in the latest quarter, 98 holders increased their positions by a total of 12.44 million shares, 89 holders decreased the positions by a total of 7.41 million shares, and 42 holders held their positions. This works out to a net increase in ownership of 5.03 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 27 holders initiated new positions by a total of 2.29 million shares and 31 holders exited their positions by a total of 4.91 million shares. This nets out to a decrease of 2.62 million shares and is another bearish sign for Z.
In the last three months, insiders executed a total of 25 trades. 25 were sells. Insider ownership decreased by a total of 520224 shares, which suggests that Z’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 6 buys and 129 sells, and ownership decreased by a net of 3.3 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. Zillow Group, Inc. (NASDAQ:Z)’s short interest is 18.35 million shares, or 15.18% of the float. This represents an increase of 3% 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.
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 Z is a Strong buy, which implies that Z 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 Zillow Group, Inc. (NASDAQ:Z) is undervalued.