Recent insider trends for AT&T Inc. (NYSE:T) 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 T, the data has some interesting implications for where the stock might be headed.
Institutions own 56.95% of AT&T Inc. (T)’s shares. The total value of these holdings, in millions, is $127,780. Among active positions in the latest quarter, 1,003 holders increased their positions by a total of 134.01 million shares, 881 holders decreased the positions by a total of 80.11 million shares, and 166 holders held their positions. This works out to a net increase in ownership of 53.9 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 72 holders initiated new positions by a total of 9.73 million shares and 62 holders exited their positions by a total of 7.35 million shares. This nets out to an increase of 2.38 million shares and is a bullish sign for T.
In the last three months, insiders executed a total of 31 trades. 30 of these were buys and 1 were sells. Insider ownership increased by a total of 84251 shares, which suggests that T’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 138 buys and 35 sells, and ownership increased by a net of 100691 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. AT&T Inc. (NYSE:T)’s short interest is 224.14 million shares, or 3.65% of the float. This represents a decrease of -4% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that T is a Weak sell, which implies that T 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 bullish. Technical indicators (also) suggest that AT&T Inc. (NYSE:T) is overvalued.