Recent insider trends for Banco Bradesco S.A. (NYSE:BBD) 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 BBD, the data has some interesting implications for where the stock might be headed.
Institutions own 22.88% of Banco Bradesco S.A. (BBD)’s shares. The total value of these holdings, in millions, is $6,981. Among active positions in the latest quarter, 93 holders increased their positions by a total of 72.41 million shares, 109 holders decreased the positions by a total of 67.02 million shares, and 25 holders held their positions. This works out to a net increase in ownership of 5.39 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 27 holders initiated new positions by a total of 5.38 million shares and 33 holders exited their positions by a total of 15.03 million shares. This nets out to a decrease of 9.65 million shares and is another bearish sign for BBD.
Insider ownership increased by a total of 0 shares, which suggests that BBD’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 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. Banco Bradesco S.A. (NYSE:BBD)’s short interest is 8.68 million shares, or 0.23% of the float. This represents an increase of 8% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that BBD is a sell, which implies that BBD 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 bullish. Technical indicators (also) suggest that Banco Bradesco S.A. (NYSE:BBD) is overvalued.