Recent insider trends for Banco Bradesco S.A. (NYSE:BBD) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. BBD’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 28.19% of Banco Bradesco S.A. (BBD)’s shares. The total value of these holdings, in millions, is $9,556. Among active positions in the latest quarter, 102 holders increased their positions by a total of 222.53 million shares, 89 holders decreased the positions by a total of 41.19 million shares, and 25 holders held their positions. This works out to a net increase in ownership of 181.34 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 26 holders initiated new positions by a total of 162.11 million shares and 26 holders exited their positions by a total of 14.26 million shares. This nets out to an increase of 147.84 million shares and is a bullish sign for BBD.
Insider ownership increased by a total of 0 shares, which suggests that BBD’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 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. Banco Bradesco S.A. (NYSE:BBD)’s short interest is 6.06 million shares, or 0.16% of the float. This represents a decrease of -9% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for BBD. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that BBD is a Strong buy, which implies that BBD 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 Banco Bradesco S.A. (NYSE:BBD) is undervalued.