Recent insider trends for Newell Brands Inc. (NYSE:NWL) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on NWL is anything to go by, investors should pay attention.
Institutions own 93.68% of Newell Brands Inc. (NWL)’s shares. The total value of these holdings, in millions, is $18,805. Among active positions in the latest quarter, 300 holders increased their positions by a total of 40.49 million shares, 355 holders decreased the positions by a total of 44.07 million shares, and 102 holders held their positions. This works out to a net decrease in ownership of 3.58 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 67 holders initiated new positions by a total of 10.9 million shares and 74 holders exited their positions by a total of 6.72 million shares. This nets out to an increase of 4.18 million shares and is a bullish sign for NWL.
In the last three months, insiders executed a total of 3 trades. 3 of these were buys and 0 were sells. Insider ownership increased by a total of 7058 shares, which suggests that NWL’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 13 buys and 20 sells, and ownership decreased by a net of 3.66 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. Newell Brands Inc. (NYSE:NWL)’s short interest is 21.52 million shares, or 4.50% of the float. This represents an increase of 15% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NWL is a Strong sell, which implies that NWL 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 Newell Brands Inc. (NYSE:NWL) is overvalued.