Analyzing the Insider Data for Tesla, Inc. (TSLA)

Recent insider trends for Tesla, Inc. (NASDAQ:TSLA) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. TSLA’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 57.51% of Tesla, Inc. (TSLA)’s shares. The total value of these holdings, in millions, is $30,091. Among active positions in the latest quarter, 392 holders increased their positions by a total of 6.48 million shares, 249 holders decreased the positions by a total of 5.08 million shares, and 156 holders held their positions. This works out to a net increase in ownership of 1.4 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 86 holders initiated new positions by a total of 1.05 million shares and 66 holders exited their positions by a total of 666484 shares. This nets out to an increase of 381645 shares and is a bullish sign for TSLA.

In the last three months, insiders executed a total of 10 trades. 10 were sells. Insider ownership decreased by a total of 14100 shares, which suggests that TSLA’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 8 buys and 42 sells, and ownership decreased by a net of 288751 shares.

Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Tesla, Inc. (NASDAQ:TSLA)’s short interest is 31.22 million shares, or 26.14% of the float. This represents an increase of 0% 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 TSLA is a sell, which implies that TSLA is expected to underperform the market based on prior trading patterns.

Conclusion

Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Tesla, Inc. (NASDAQ:TSLA) is overvalued.

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