Recent insider trends for Caesars Entertainment Corporation (NASDAQ:CZR) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on CZR is anything to go by, investors should pay attention.
Institutions own 38.37% of Caesars Entertainment Corporation (CZR)’s shares. The total value of these holdings, in millions, is $3,417. Among active positions in the latest quarter, 104 holders increased their positions by a total of 41.31 million shares, 67 holders decreased the positions by a total of 13.79 million shares, and 26 holders held their positions. This works out to a net increase in ownership of 27.52 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 36 holders initiated new positions by a total of 9.18 million shares and 22 holders exited their positions by a total of 4.08 million shares. This nets out to an increase of 5.1 million shares and is a bullish sign for CZR.
In the last three months, insiders executed a total of 20 trades. 15 of these were buys and 5 were sells. Insider ownership decreased by a total of 77.15 million shares, which suggests that CZR’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 15 buys and 45 sells, and ownership decreased by a net of 77.52 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Caesars Entertainment Corporation (NASDAQ:CZR)’s short interest is 26.43 million shares, or 60.87% of the float. This represents a decrease of -11% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for CZR. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CZR is a Weak sell, which implies that CZR is expected to underperform 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 Caesars Entertainment Corporation (NASDAQ:CZR) is overvalued.