Recent insider trends for JD.com, Inc. (NASDAQ:JD) 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 JD, the data has some interesting implications for where the stock might be headed.
Institutions own 27.25% of JD.com, Inc. (JD)’s shares. The total value of these holdings, in millions, is $24,239. Among active positions in the latest quarter, 261 holders increased their positions by a total of 69.89 million shares, 177 holders decreased the positions by a total of 84.66 million shares, and 49 holders held their positions. This works out to a net decrease in ownership of 14.77 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 71 holders initiated new positions by a total of 18.51 million shares and 39 holders exited their positions by a total of 15.99 million shares. This nets out to an increase of 2.52 million shares and is a bullish sign for JD.
Insider ownership increased by a total of 0 shares, which suggests that JD’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.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. JD.com, Inc. (NASDAQ:JD)’s short interest is 51.2 million shares, or 7.69% of the float. This represents an increase of 20% 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 JD is a sell, which implies that JD 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 JD.com, Inc. (NASDAQ:JD) is overvalued.