Recent insider trends for JPMorgan Chase & Co. (NYSE:JPM) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on JPM is anything to go by, investors should pay attention.
Institutions own 75.34% of JPMorgan Chase & Co. (JPM)’s shares. The total value of these holdings, in millions, is $276,378. Among active positions in the latest quarter, 953 holders increased their positions by a total of 65.22 million shares, 1,055 holders decreased the positions by a total of 81.53 million shares, and 270 holders held their positions. This works out to a net decrease in ownership of 16.31 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 96 holders initiated new positions by a total of 12.93 million shares and 78 holders exited their positions by a total of 5.91 million shares. This nets out to an increase of 7.03 million shares and is a bullish sign for JPM.
In the last three months, insiders executed a total of 16 trades. 8 of these were buys and 8 were sells. Insider ownership decreased by a total of 1.81 million shares, which suggests that JPM’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 46 buys and 44 sells, and ownership decreased by a net of 2.99 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. JPMorgan Chase & Co. (NYSE:JPM)’s short interest is 23.27 million shares, or % of the float. This represents a decrease of -18% in the number of shares being shorted compared to the previous reading, and implies that investors felt less 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 JPM is a Strong buy, which implies that JPM is expected to outperform 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 JPMorgan Chase & Co. (NYSE:JPM) is undervalued.