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Analyzing the Insider Data for Lowe’s Companies, Inc. (LOW)

Recent insider trends for Lowe’s Companies, Inc. (NYSE:LOW) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of LOW, the data has a lot to say about how the stock might perform going forward.

Institutions own 76.91% of Lowe’s Companies, Inc. (LOW)’s shares. The total value of these holdings, in millions, is $49,633. Among active positions in the latest quarter, 612 holders increased their positions by a total of 53.86 million shares, 602 holders decreased the positions by a total of 52.67 million shares, and 167 holders held their positions. This works out to a net increase in ownership of 1.19 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 103 holders initiated new positions by a total of 10.46 million shares and 97 holders exited their positions by a total of 11.11 million shares. This nets out to a decrease of 648125 shares and is another bearish sign for LOW.

In the last three months, insiders executed a total of 11 trades. 11 were sells. Insider ownership decreased by a total of 58191 shares, which suggests that LOW’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 10 buys and 36 sells, and ownership decreased by a net of 688634 shares.



Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Lowe’s Companies, Inc. (NYSE:LOW)’s short interest is 5.67 million shares, or % of the float. This represents a decrease of -42% 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.

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 LOW is a sell, which implies that LOW is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Lowe’s Companies, Inc. (NYSE:LOW) is overvalued.

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