Recent insider trends for Altria Group, Inc. (NYSE:MO) 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 MO, the data has some interesting implications for where the stock might be headed.
Institutions own 64.05% of Altria Group, Inc. (MO)’s shares. The total value of these holdings, in millions, is $85,774. Among active positions in the latest quarter, 661 holders increased their positions by a total of 74.34 million shares, 799 holders decreased the positions by a total of 64.65 million shares, and 219 holders held their positions. This works out to a net increase in ownership of 9.69 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 90 holders initiated new positions by a total of 6.95 million shares and 114 holders exited their positions by a total of 3.44 million shares. This nets out to an increase of 3.51 million shares and is a bullish sign for MO.
In the last three months, insiders executed a total of 3 trades.3 were sells. Insider ownership decreased by a total of 49721 shares, which suggests that MO’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 24 buys and 26 sells, and ownership decreased by a net of 168369 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. Altria Group, Inc. (NYSE:MO)’s short interest is 11.65 million shares, or % 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.
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 MO is a Strong buy, which implies that MO 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 Altria Group, Inc. (NYSE:MO) is undervalued.