A Trio Of General Motors Company (GM) Indicators To Watch

In the financial blogosphere, there are lots of facts and figures for General Motors Company (NYSE:GM) readers to keep an eye on, but it is useful to take note of a stock’s short interest. Two pieces of data typically used are: (a) the fraction of a stock’s float that bears are presently selling, in addition to (b) the difference in short selling activity.

Heightened shorting usually indicates what it implies: the market’s big players have grown less fond of the stock. Short selling that’s too high, though, sometimes has a bullish effect on stock price, as short-ers may be forced to buy their shares.

Within Insider Monkey, it’s not a secret that we monitor hedge fund interest, but it’s eqaully as crucial to group this information with overall short interest information. A few, mega- investors might disclose that they’re short on a stock, but it’s not an SEC requirement. Nonetheless, some retail investors may want to stay away from highly shorted stocks with elevated hedge fund support, while others may desire short-squeeze opportunities. For investors looking for a time-tested piggybacking strategy, discover the details of our premium strategy.

With that in mind, let’s take a gander at the recent info pertaining to General Motors Company (NYSE:GM).

Tracking the most recent FINRA short interest data, which is reported two times a month, we can realize that General Motors Company (NYSE:GM) has a short interest of 7.50% of float. With a float of 851.99M shares, this represents a short ratio of 6.00.

It is also crucial to take note of hedge fund sentiment via their 13F forms. Of the funds we track, Warren Buffett’s Berkshire Hathaway had the biggest position in General Motors Company (NYSE:GM), worth close to $695.5 million, comprising 0.8% of its total 13F portfolio. In the second spot is Greenlight Capital, managed by David Einhorn, which held a $589 million position; 9% of its 13F portfolio is allocated to the company. Remaining hedge funds with similar optimism include Doug Silverman and Alexander Klabin’s Senator Investment Group, Michael Novogratz’s Fortress Investment Group and William B. Gray’s Orbis Investment Management.

Also, insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past half-year. Over the last half-year time frame, General Motors Company (NYSE:GM) has seen 2 unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s also review activity in other stocks similar to General Motors Company (NYSE:GM). These stocks are Toyota Motor Corporation (ADR) (NYSE:TM), Tata Motors Limited (ADR) (NYSE:TTM), Honda Motor Co Ltd (ADR) (NYSE:HMC), Ford Motor Company (NYSE:F), and Nissan Motor Co., Ltd. (ADR) (PINK:NSANY). All of these stocks are in the auto manufacturers – major industry and their market caps match GM’s market cap.

These three tools–short interest data, hedge fund sentiment and insider trading history–are something every reader should pay attention to. Although it’s difficult to formulate a usable strategy from short interest filings, hedgie and insider sentiment provide lots of market beating opportunities if you know where to look.