Recent insider trends for United Technologies Corporation (NYSE:UTX) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of UTX, the data has a lot to say about how the stock might perform going forward.
Institutions own 80.43% of United Technologies Corporation (UTX)’s shares. The total value of these holdings, in millions, is $70,848. Among active positions in the latest quarter, 686 holders increased their positions by a total of 27.01 million shares, 737 holders decreased the positions by a total of 29.7 million shares, and 231 holders held their positions. This works out to a net decrease in ownership of 2.69 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 112 holders initiated new positions by a total of 4.61 million shares and 54 holders exited their positions by a total of 1.97 million shares. This nets out to an increase of 2.63 million shares and is a bullish sign for UTX.
In the last three months, insiders executed a total of 1 trades. 0 of these were buys and 1 were sells. Insider ownership decreased by a total of 1060 shares, which suggests that UTX’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 1 buys and 32 sells, and ownership decreased by a net of 396885 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. United Technologies Corporation (NYSE:UTX)’s short interest is 8.02 million shares, or 1.07% of the float. This represents an increase of 14% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that UTX is a Strong sell, which implies that UTX 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 bearish. Technical indicators (also) suggest that United Technologies Corporation (NYSE:UTX) is overvalued.