Recent insider trends for Regal Entertainment Group (NYSE:RGC) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of RGC, the data has some interesting implications for where the stock might be headed.
Institutions own 98.63% of Regal Entertainment Group (RGC)’s shares. The total value of these holdings, in millions, is $2,062. Among active positions in the latest quarter, 156 holders increased their positions by a total of 21.96 million shares, 118 holders decreased the positions by a total of 12.36 million shares, and 33 holders held their positions. This works out to a net increase in ownership of 9.6 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 37 holders initiated new positions by a total of 3.73 million shares and 45 holders exited their positions by a total of 4.55 million shares. This nets out to a decrease of 820823 shares and is another bearish sign for RGC.
In the last three months, insiders executed a total of 3 trades. 3 of these were buys and 0 were sells. Insider ownership increased by a total of 42500 shares, which suggests that RGC’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 15 buys and 20 sells, and ownership decreased by a net of 12.91 million 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. Regal Entertainment Group (NYSE:RGC)’s short interest is 28.37 million shares, or 25.47% of the float. This represents an increase of 2% 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 RGC. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that RGC is a Weak sell, which implies that RGC 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 Regal Entertainment Group (NYSE:RGC) is overvalued.