Recent insider trends for The Procter & Gamble Company (NYSE:PG) 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 PG might perform in the future.
Institutions own 60.93% of The Procter & Gamble Company (PG)’s shares. The total value of these holdings, in millions, is $141,273. Among active positions in the latest quarter, 835 holders increased their positions by a total of 43.85 million shares, 1,042 holders decreased the positions by a total of 47.57 million shares, and 254 holders held their positions. This works out to a net decrease in ownership of 3.71 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 70 holders initiated new positions by a total of 5 million shares and 59 holders exited their positions by a total of 2.8 million shares. This nets out to an increase of 2.2 million shares and is a bullish sign for PG.
In the last three months, insiders executed a total of 19 trades. 6 of these were buys and 13 were sells. Insider ownership decreased by a total of 49375 shares, which suggests that PG’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 53 buys and 101 sells, and ownership decreased by a net of 816542 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. The Procter & Gamble Company (NYSE:PG)’s short interest is 27.3 million shares, or % of the float. This represents an increase of 2% 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 PG is a Weak buy, which implies that PG 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 The Procter & Gamble Company (NYSE:PG) is undervalued.