Recent insider trends for J. C. Penney Company, Inc. (NYSE:JCP) 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 JCP, the data has some interesting implications for where the stock might be headed.
Institutions own 73.65% of J. C. Penney Company, Inc. (JCP)’s shares. The total value of these holdings, in millions, is $757. Among active positions in the latest quarter, 133 holders increased their positions by a total of 32.01 million shares, 104 holders decreased the positions by a total of 28.44 million shares, and 60 holders held their positions. This works out to a net increase in ownership of 3.57 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 41 holders initiated new positions by a total of 15.4 million shares and 41 holders exited their positions by a total of 11.45 million shares. This nets out to an increase of 3.96 million shares and is a bullish sign for JCP.
In the last three months, insiders executed a total of 3 trades. 2 of these were buys and 1 were sells. Insider ownership decreased by a total of 260892 shares, which suggests that JCP’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 43 buys and 11 sells, and ownership increased by a net of 1.8 million shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. J. C. Penney Company, Inc. (NYSE:JCP)’s short interest is 150.7 million shares, or 51.56% 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 JCP is a hold, which implies that JCP is expected to perform in line with 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 J. C. Penney Company, Inc. (NYSE:JCP) is fairly valued.