Recent insider trends for CVS Health Corporation (NYSE:CVS) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how CVS might perform in the future.
Institutions own 83.38% of CVS Health Corporation (CVS)’s shares. The total value of these holdings, in millions, is $59,962. Among active positions in the latest quarter, 696 holders increased their positions by a total of 50.6 million shares, 798 holders decreased the positions by a total of 54.09 million shares, and 133 holders held their positions. This works out to a net decrease in ownership of 3.49 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 88 holders initiated new positions by a total of 6 million shares and 79 holders exited their positions by a total of 5.74 million shares. This nets out to an increase of 256874 shares and is a bullish sign for CVS.
In the last three months, insiders executed a total of 13 trades. 5 of these were buys and 8 were sells. Insider ownership decreased by a total of 720464 shares, which suggests that CVS’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 34 buys and 47 sells, and ownership decreased by a net of 1.03 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. CVS Health Corporation (NYSE:CVS)’s short interest is 24.84 million shares, or % of the float. This represents an increase of 16% 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 CVS is a Weak sell, which implies that CVS is expected to underperform 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 CVS Health Corporation (NYSE:CVS) is overvalued.