Recent insider trends for The Interpublic Group of Companies, Inc. (NYSE:IPG) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. IPG’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 101.59% of The Interpublic Group of Companies, Inc. (IPG)’s shares. The total value of these holdings, in millions, is $7,418. Among active positions in the latest quarter, 232 holders increased their positions by a total of 43.27 million shares, 249 holders decreased the positions by a total of 40.6 million shares, and 68 holders held their positions. This works out to a net increase in ownership of 2.66 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 55 holders initiated new positions by a total of 9.67 million shares and 70 holders exited their positions by a total of 6.41 million shares. This nets out to an increase of 3.26 million shares and is a bullish sign for IPG.
In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 20000 shares, which suggests that IPG’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 16 buys and 23 sells, and ownership decreased by a net of 619976 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. The Interpublic Group of Companies, Inc. (NYSE:IPG)’s short interest is 31.78 million shares, or 8.15% of the float. This represents an increase of 25% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that IPG is a Strong sell, which implies that IPG 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 The Interpublic Group of Companies, Inc. (NYSE:IPG) is overvalued.