Recent insider trends for Ford Motor Company (NYSE:F) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of F, the data has a lot to say about how the stock might perform going forward.
Institutions own 55.36% of Ford Motor Company (F)’s shares. The total value of these holdings, in millions, is $26,848. Among active positions in the latest quarter, 444 holders increased their positions by a total of 112.96 million shares, 553 holders decreased the positions by a total of 138.44 million shares, and 149 holders held their positions. This works out to a net decrease in ownership of 25.48 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 80 holders initiated new positions by a total of 38.24 million shares and 80 holders exited their positions by a total of 17.22 million shares. This nets out to an increase of 21.02 million shares and is a bullish sign for F.
In the last three months, insiders executed a total of 9 trades. 2 of these were buys and 7 were sells. Insider ownership decreased by a total of 176066 shares, which suggests that F’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 8 buys and 60 sells, and ownership decreased by a net of 1.27 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. Ford Motor Company (NYSE:F)’s short interest is 125.37 million shares, or 3.41% of the float. This represents an increase of 9% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for F. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that F is a buy, which implies that F 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 Ford Motor Company (NYSE:F) is undervalued.