Finance

Are General Electric Company (GE)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for General Electric Company (NYSE:GE) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of GE, the data has a lot to say about how the stock might perform going forward.

Institutions own 56.87% of General Electric Company (GE)’s shares. The total value of these holdings, in millions, is $87,586. Among active positions in the latest quarter, 786 holders increased their positions by a total of 363.98 million shares, 1,215 holders decreased the positions by a total of 271.83 million shares, and 159 holders held their positions. This works out to a net increase in ownership of 92.15 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 79 holders initiated new positions by a total of 22.31 million shares and 123 holders exited their positions by a total of 24.95 million shares. This nets out to a decrease of 2.64 million shares and is another bearish sign for GE.

In the last three months, insiders executed a total of 16 trades. 4 of these were buys and 12 were sells. Insider ownership increased by a total of 3.06 million shares, which suggests that GE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 17 buys and 28 sells, and ownership increased by a net of 2.78 million shares.



Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. General Electric Company (NYSE:GE)’s short interest is 123.36 million shares, or % of the float. This represents an increase of 22% 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 GE is a Strong sell, which implies that GE is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that General Electric Company (NYSE:GE) is overvalued.

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