Recent insider trends for US Foods Holding Corp. (NYSE:USFD) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on USFD is anything to go by, investors should pay attention.
Institutions own 98.40% of US Foods Holding Corp. (USFD)’s shares. The total value of these holdings, in millions, is $6,169. Among active positions in the latest quarter, 164 holders increased their positions by a total of 56.28 million shares, 49 holders decreased the positions by a total of 57.26 million shares, and 6 holders held their positions. This works out to a net decrease in ownership of 981736 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 61 holders initiated new positions by a total of 14.26 million shares and 15 holders exited their positions by a total of 5.7 million shares. This nets out to an increase of 8.56 million shares and is a bullish sign for USFD.
In the last three months, insiders executed a total of 5 trades. 0 of these were buys and 5 were sells. Insider ownership decreased by a total of 144594 shares, which suggests that USFD’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 0 buys and 27 sells, and ownership decreased by a net of 218.79 million 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. US Foods Holding Corp. (NYSE:USFD)’s short interest is 4.09 million shares, or 4.33% 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.
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 USFD is a sell, which implies that USFD 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 US Foods Holding Corp. (NYSE:USFD) is overvalued.