Recent insider trends for Regions Financial Corporation (NYSE:RF) 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 RF, the data has some interesting implications for where the stock might be headed.
Institutions own 79.02% of Regions Financial Corporation (RF)’s shares. The total value of these holdings, in millions, is $13,905. Among active positions in the latest quarter, 288 holders increased their positions by a total of 104.42 million shares, 292 holders decreased the positions by a total of 103.69 million shares, and 115 holders held their positions. This works out to a net increase in ownership of 728990 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 65 holders initiated new positions by a total of 13.08 million shares and 59 holders exited their positions by a total of 23.25 million shares. This nets out to a decrease of 10.17 million shares and is another bearish sign for RF.
In the last three months, insiders executed a total of 30 trades. 27 of these were buys and 3 were sells. Insider ownership decreased by a total of 57519 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 132 buys and 57 sells, and ownership decreased by a net of 1.86 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. Regions Financial Corporation (NYSE:RF)’s short interest is 20.74 million shares, or % of the float. This represents a decrease of -26% 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 RF. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that RF is a Weak 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.