Recent insider trends for Micron Technology, Inc. (NASDAQ:MU) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of MU, the data has a lot to say about how the stock might perform going forward.
Institutions own 82.54% of Micron Technology, Inc. (MU)’s shares. The total value of these holdings, in millions, is $45,737. Among active positions in the latest quarter, 433 holders increased their positions by a total of 135.05 million shares, 319 holders decreased the positions by a total of 76.94 million shares, and 66 holders held their positions. This works out to a net increase in ownership of 58.11 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 123 holders initiated new positions by a total of 19.8 million shares and 60 holders exited their positions by a total of 12.82 million shares. This nets out to an increase of 6.98 million shares and is a bullish sign for MU.
In the last three months, insiders executed a total of 47 trades. 15 of these were buys and 32 were sells. Insider ownership increased by a total of 64505 shares, which suggests that MU’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 18 buys and 61 sells, and ownership decreased by a net of 338436 shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Micron Technology, Inc. (NASDAQ:MU)’s short interest is 53.73 million shares, or 5.15% of the float. This represents an increase of 2% 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.
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 MU is a Strong buy, which implies that MU 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 Micron Technology, Inc. (NASDAQ:MU) is undervalued.