Recent insider trends for HP Inc. (NYSE:HPQ) 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 HPQ might perform in the future.
Institutions own 81.11% of HP Inc. (HPQ)’s shares. The total value of these holdings, in millions, is $28,544. Among active positions in the latest quarter, 343 holders increased their positions by a total of 96.08 million shares, 384 holders decreased the positions by a total of 81.23 million shares, and 147 holders held their positions. This works out to a net increase in ownership of 14.84 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 17.35 million shares and 57 holders exited their positions by a total of 2.45 million shares. This nets out to an increase of 14.9 million shares and is a bullish sign for HPQ.
In the last three months, insiders executed a total of 21 trades.21 were sells. Insider ownership decreased by a total of 2.83 million shares, which suggests that HPQ’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 69 sells, and ownership decreased by a net of 6.42 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. HP Inc. (NYSE:HPQ)’s short interest is 34.9 million shares, or % of the float. This represents an increase of 13% 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 HPQ is a Weak sell, which implies that HPQ 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 HP Inc. (NYSE:HPQ) is overvalued.