Recent insider trends for Regions Financial Corporation (NYSE:RF) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of RF, the data has a lot to say about how the stock might perform going forward.
Institutions own 77.24% of Regions Financial Corporation (RF)’s shares. The total value of these holdings, in millions, is $13,928. Among active positions in the latest quarter, 295 holders increased their positions by a total of 123.59 million shares, 285 holders decreased the positions by a total of 104.85 million shares, and 114 holders held their positions. This works out to a net increase in ownership of 18.75 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 62 holders initiated new positions by a total of 12.04 million shares and 54 holders exited their positions by a total of 26.71 million shares. This nets out to a decrease of 14.67 million shares and is another bearish sign for RF.
In the last three months, insiders executed a total of 16 trades. 10 of these were buys and 6 were sells. Insider ownership decreased by a total of 108098 shares, which suggests that RF’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 115 buys and 58 sells, and ownership decreased by a net of 2.03 million shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Regions Financial Corporation (NYSE:RF)’s short interest is 25.24 million shares, or % of the float. This represents a decrease of -2% 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 RF. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that RF is a Strong buy, which implies that RF 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 Regions Financial Corporation (NYSE:RF) is undervalued.