Recent insider trends for Citigroup Inc. (NYSE:C) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. C’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 81.72% of Citigroup Inc. (C)’s shares. The total value of these holdings, in millions, is $165,386. Among active positions in the latest quarter, 768 holders increased their positions by a total of 127.86 million shares, 587 holders decreased the positions by a total of 79.64 million shares, and 199 holders held their positions. This works out to a net increase in ownership of 48.22 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 131 holders initiated new positions by a total of 39.4 million shares and 78 holders exited their positions by a total of 10.69 million shares. This nets out to an increase of 28.72 million shares and is a bullish sign for C.
In the last three months, insiders executed a total of 18 trades. 18 of these were buys. Insider ownership increased by a total of 4383 shares, which suggests that C’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 113 buys and 30 sells, and ownership decreased by a net of 139274 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Citigroup Inc. (NYSE:C)’s short interest is 25.39 million shares, or % of the float. This represents a decrease of -2% 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 C. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that C is a Strong buy, which implies that C 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 bullish. Technical indicators (also) suggest that Citigroup Inc. (NYSE:C) is undervalued.