Recent insider trends for DDR Corp. (NYSE:DDR) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. DDR’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 81.53% of DDR Corp. (DDR)’s shares. The total value of these holdings, in millions, is $2,219. Among active positions in the latest quarter, 141 holders increased their positions by a total of 64.49 million shares, 136 holders decreased the positions by a total of 58.91 million shares, and 36 holders held their positions. This works out to a net increase in ownership of 5.57 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 47 holders initiated new positions by a total of 29.38 million shares and 45 holders exited their positions by a total of 12.58 million shares. This nets out to an increase of 16.8 million shares and is a bullish sign for DDR.
In the last three months, insiders executed a total of 5 trades. 3 of these were buys and 2 were sells. Insider ownership increased by a total of 57664 shares, which suggests that DDR’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 30 buys and 5 sells, and ownership increased by a net of 2.97 million 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. DDR Corp. (NYSE:DDR)’s short interest is 13.36 million shares, or 4.40% of the float. This represents an increase of 24% 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.
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 DDR. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that DDR is a Weak sell, which implies that DDR 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 DDR Corp. (NYSE:DDR) is overvalued.