Recent insider trends for The Coca-Cola Company (NYSE:KO) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. KO’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 66.55% of The Coca-Cola Company (KO)’s shares. The total value of these holdings, in millions, is $131,174. Among active positions in the latest quarter, 679 holders increased their positions by a total of 76.68 million shares, 886 holders decreased the positions by a total of 52.91 million shares, and 293 holders held their positions. This works out to a net increase in ownership of 23.77 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 65 holders initiated new positions by a total of 3.08 million shares and 64 holders exited their positions by a total of 2.16 million shares. This nets out to an increase of 920722 shares and is a bullish sign for KO.
In the last three months, insiders executed a total of 1 trades.1 were sells. Insider ownership decreased by a total of 338009 shares, which suggests that KO’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 17 buys and 24 sells, and ownership decreased by a net of 1.38 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. The Coca-Cola Company (NYSE:KO)’s short interest is 29.43 million shares, or 0.76% of the float. This represents an increase of 6% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that KO is a buy, which implies that KO 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 The Coca-Cola Company (NYSE:KO) is undervalued.