Recent insider trends for KeyCorp (NYSE:KEY) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on KEY is anything to go by, investors should pay attention.
Institutions own 81.99% of KeyCorp (KEY)’s shares. The total value of these holdings, in millions, is $16,559. Among active positions in the latest quarter, 333 holders increased their positions by a total of 80.81 million shares, 283 holders decreased the positions by a total of 71.83 million shares, and 93 holders held their positions. This works out to a net increase in ownership of 8.98 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 72 holders initiated new positions by a total of 16.7 million shares and 50 holders exited their positions by a total of 15.12 million shares. This nets out to an increase of 1.58 million shares and is a bullish sign for KEY.
In the last three months, insiders executed a total of 15 trades. 5 of these were buys and 10 were sells. Insider ownership decreased by a total of 592759 shares, which suggests that KEY’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 16 buys and 58 sells, and ownership decreased by a net of 1.83 million 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. KeyCorp (NYSE:KEY)’s short interest is 14.01 million shares, or % of the float. This represents a decrease of -7% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for KEY. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that KEY is a buy, which implies that KEY 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 bearish. Technical indicators (also) suggest that KeyCorp (NYSE:KEY) is undervalued.