Recent insider trends for MGM Resorts International (NYSE:MGM) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of MGM, the data has a lot to say about how the stock might perform going forward.
Institutions own 76.44% of MGM Resorts International (MGM)’s shares. The total value of these holdings, in millions, is $13,519. Among active positions in the latest quarter, 217 holders increased their positions by a total of 76.34 million shares, 220 holders decreased the positions by a total of 60.31 million shares, and 49 holders held their positions. This works out to a net increase in ownership of 16.03 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 69 holders initiated new positions by a total of 46.05 million shares and 60 holders exited their positions by a total of 15.02 million shares. This nets out to an increase of 31.03 million shares and is a bullish sign for MGM.
In the last three months, insiders executed a total of 20 trades. 20 were sells. Insider ownership decreased by a total of 6.15 million shares, which suggests that MGM’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 13 buys and 95 sells, and ownership increased by a net of 21.95 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. MGM Resorts International (NYSE:MGM)’s short interest is 22.29 million shares, or 4.41% of the float. This represents a decrease of -12% in the number of shares being shorted compared to the previous reading, and implies that investors felt less 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 MGM is a Strong sell, which implies that MGM 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 bearish. Technical indicators (also) suggest that MGM Resorts International (NYSE:MGM) is overvalued.