Recent insider trends for First Data Corporation (NYSE:FDC) 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 FDC might perform in the future.
Institutions own 96.22% of First Data Corporation (FDC)’s shares. The total value of these holdings, in millions, is $7,512. Among active positions in the latest quarter, 256 holders increased their positions by a total of 112.67 million shares, 89 holders decreased the positions by a total of 16.28 million shares, and 37 holders held their positions. This works out to a net increase in ownership of 96.38 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 90 holders initiated new positions by a total of 37.88 million shares and 29 holders exited their positions by a total of 2.46 million shares. This nets out to an increase of 35.42 million shares and is a bullish sign for FDC.
In the last three months, insiders executed a total of 18 trades. 8 of these were buys and 10 were sells. Insider ownership increased by a total of 1594 shares, which suggests that FDC’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 61 buys and 36 sells, and ownership increased by a net of 9.88 million shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. First Data Corporation (NYSE:FDC)’s short interest is 23.61 million shares, or 6.48% 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.
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 FDC is a Strong sell, which implies that FDC 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 First Data Corporation (NYSE:FDC) is overvalued.