Recent insider trends for Bed Bath & Beyond Inc. (NASDAQ:BBBY) 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 BBBY, the data has some interesting implications for where the stock might be headed.
Institutions own 95.49% of Bed Bath & Beyond Inc. (BBBY)’s shares. The total value of these holdings, in millions, is $3,279. Among active positions in the latest quarter, 175 holders increased their positions by a total of 20.49 million shares, 240 holders decreased the positions by a total of 22.52 million shares, and 50 holders held their positions. This works out to a net decrease in ownership of 2.04 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 33 holders initiated new positions by a total of 2.18 million shares and 97 holders exited their positions by a total of 4.11 million shares. This nets out to a decrease of 1.93 million shares and is another bearish sign for BBBY.
Insider ownership increased by a total of 0 shares, which suggests that BBBY’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 9 buys and 33 sells, and ownership decreased by a net of 501256 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. Bed Bath & Beyond Inc. (NASDAQ:BBBY)’s short interest is 21.84 million shares, or % of the float. This represents a decrease of -5% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that BBBY is a buy, which implies that BBBY 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 bullish. Technical indicators (also) suggest that Bed Bath & Beyond Inc. (NASDAQ:BBBY) is undervalued.