Recent insider trends for Arconic Inc. (NYSE:ARNC) 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 ARNC might perform in the future.
Institutions own 82.22% of Arconic Inc. (ARNC)’s shares. The total value of these holdings, in millions, is $9,395. Among active positions in the latest quarter, 197 holders increased their positions by a total of 50.46 million shares, 278 holders decreased the positions by a total of 38.44 million shares, and 100 holders held their positions. This works out to a net increase in ownership of 12.03 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 60 holders initiated new positions by a total of 10.9 million shares and 65 holders exited their positions by a total of 3.66 million shares. This nets out to an increase of 7.24 million shares and is a bullish sign for ARNC.
In the last three months, insiders executed a total of 7 trades. 7 of these were buy. Insider ownership increased by a total of 133627 shares, which suggests that ARNC’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 96 buys and 7 sells, and ownership increased by a net of 6.83 million 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. Arconic Inc. (NYSE:ARNC)’s short interest is 10.29 million shares, or 2.65% 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.
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 ARNC is a sell, which implies that ARNC 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 Arconic Inc. (NYSE:ARNC) is overvalued.