Finance

Dissecting the Insider Trading Patterns of Hanesbrands Inc. (HBI)

Recent insider trends for Hanesbrands Inc. (NYSE:HBI) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of HBI, the data has a lot to say about how the stock might perform going forward.

Institutions own 99.61% of Hanesbrands Inc. (HBI)’s shares. The total value of these holdings, in millions, is $7,510. Among active positions in the latest quarter, 301 holders increased their positions by a total of 39.88 million shares, 289 holders decreased the positions by a total of 25.62 million shares, and 99 holders held their positions. This works out to a net increase in ownership of 14.27 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 77 holders initiated new positions by a total of 14.39 million shares and 49 holders exited their positions by a total of 5.25 million shares. This nets out to an increase of 9.14 million shares and is a bullish sign for HBI.

In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 43337 shares, which suggests that HBI’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 30 buys and 50 sells, and ownership decreased by a net of 332490 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. Hanesbrands Inc. (NYSE:HBI)’s short interest is 65.39 million shares, or % 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.

Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that HBI is a Weak sell, which implies that HBI is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Hanesbrands Inc. (NYSE:HBI) is overvalued.

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