Recent insider trends for HP Inc. (NYSE:HPQ) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of HPQ, the data has some interesting implications for where the stock might be headed.
Institutions own 80.35% of HP Inc. (HPQ)’s shares. The total value of these holdings, in millions, is $27,189. Among active positions in the latest quarter, 341 holders increased their positions by a total of 106.21 million shares, 390 holders decreased the positions by a total of 114.58 million shares, and 145 holders held their positions. This works out to a net decrease in ownership of 8.38 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 69 holders initiated new positions by a total of 10.62 million shares and 63 holders exited their positions by a total of 18.71 million shares. This nets out to a decrease of 8.1 million shares and is another bearish sign for HPQ.
In the last three months, insiders executed a total of 12 trades. 12 were sells. Insider ownership decreased by a total of 2.5 million shares, which suggests that HPQ’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 69 sells, and ownership decreased by a net of 5.03 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. HP Inc. (NYSE:HPQ)’s short interest is 34.42 million shares, or % of the float. This represents a decrease of -3% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for HPQ. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that HPQ is a Strong buy, which implies that HPQ 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 HP Inc. (NYSE:HPQ) is undervalued.