Finance

Dissecting the Insider Trading Patterns of Edison International (EIX)

Recent insider trends for Edison International (NYSE:EIX) 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 EIX, the data has some interesting implications for where the stock might be headed.

Institutions own 82.87% of Edison International (EIX)’s shares. The total value of these holdings, in millions, is $18,900. Among active positions in the latest quarter, 273 holders increased their positions by a total of 17.52 million shares, 263 holders decreased the positions by a total of 18.6 million shares, and 127 holders held their positions. This works out to a net decrease in ownership of 1.08 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 54 holders initiated new positions by a total of 5.27 million shares and 42 holders exited their positions by a total of 1.26 million shares. This nets out to an increase of 4.01 million shares and is a bullish sign for EIX.

In the last three months, insiders executed a total of 1 trades.1 were sells. Insider ownership decreased by a total of 224718 shares, which suggests that EIX’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 13 buys and 32 sells, and ownership decreased by a net of 511103 shares.



Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Edison International (NYSE:EIX)’s short interest is 3.84 million shares, or 1.18% of the float. This represents a decrease of -1% 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 EIX is a Strong sell, which implies that EIX 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 bearish. Technical indicators (also) suggest that Edison International (NYSE:EIX) is overvalued.

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