Finance

Analyzing the Insider Data for Humana Inc. (HUM)

Recent insider trends for Humana Inc. (NYSE:HUM) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of HUM, the data has a lot to say about how the stock might perform going forward.

Institutions own 96.80% of Humana Inc. (HUM)’s shares. The total value of these holdings, in millions, is $34,755. Among active positions in the latest quarter, 311 holders increased their positions by a total of 17.35 million shares, 274 holders decreased the positions by a total of 21.1 million shares, and 106 holders held their positions. This works out to a net decrease in ownership of 3.75 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 85 holders initiated new positions by a total of 2.1 million shares and 58 holders exited their positions by a total of 4.03 million shares. This nets out to a decrease of 1.94 million shares and is another bearish sign for HUM.

In the last three months, insiders executed a total of 8 trades. 0 of these were buys and 8 were sells. Insider ownership decreased by a total of 65370 shares, which suggests that HUM’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 7 buys and 74 sells, and ownership decreased by a net of 778497 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. Humana Inc. (NYSE:HUM)’s short interest is 2.68 million shares, or % of the float. This represents a decrease of -36% 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.

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 HUM is a Weak sell, which implies that HUM is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Humana Inc. (NYSE:HUM) is overvalued.

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