Recent insider trends for AK Steel Holding Corporation (NYSE:AKS) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. AKS’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 74.12% of AK Steel Holding Corporation (AKS)’s shares. The total value of these holdings, in millions, is $1,347. Among active positions in the latest quarter, 156 holders increased their positions by a total of 27.59 million shares, 111 holders decreased the positions by a total of 36.85 million shares, and 33 holders held their positions. This works out to a net decrease in ownership of 9.25 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 44 holders initiated new positions by a total of 10.54 million shares and 40 holders exited their positions by a total of 17.62 million shares. This nets out to a decrease of 7.08 million shares and is another bearish sign for AKS.
In the last three months, insiders executed a total of 12 trades. 10 of these were buys and 2 were sells. Insider ownership increased by a total of 43961 shares, which suggests that AKS’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 54 buys and 44 sells, and ownership increased by a net of 283846 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. AK Steel Holding Corporation (NYSE:AKS)’s short interest is 73.25 million shares, or 23.40% of the float. This represents an increase of 6% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that AKS is a Weak buy, which implies that AKS 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 bullish. Technical indicators (also) suggest that AK Steel Holding Corporation (NYSE:AKS) is undervalued.