Recent insider trends for Newell Brands Inc. (NYSE:NWL) 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 NWL, the data has some interesting implications for where the stock might be headed.
Institutions own 90.95% of Newell Brands Inc. (NWL)’s shares. The total value of these holdings, in millions, is $13,061. Among active positions in the latest quarter, 308 holders increased their positions by a total of 27.21 million shares, 348 holders decreased the positions by a total of 46.86 million shares, and 92 holders held their positions. This works out to a net decrease in ownership of 19.66 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 62 holders initiated new positions by a total of 7.23 million shares and 92 holders exited their positions by a total of 14.22 million shares. This nets out to a decrease of 6.99 million shares and is another bearish sign for NWL.
In the last three months, insiders executed a total of 6 trades. 3 of these were buys and 3 were sells. Insider ownership decreased by a total of 2.55 million shares, which suggests that NWL’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 23 sells, and ownership decreased by a net of 6.25 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. Newell Brands Inc. (NYSE:NWL)’s short interest is 23.52 million shares, or 4.92% of the float. This represents an increase of 1% 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.
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 NWL. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NWL is a Strong sell, which implies that NWL 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 Newell Brands Inc. (NYSE:NWL) is overvalued.