Markets

What the Insider Data Suggests About McCormick & Company, Incorporated (MKC)

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

Institutions own 78.41% of McCormick & Company, Incorporated (MKC)’s shares. The total value of these holdings, in millions, is $9,055. Among active positions in the latest quarter, 249 holders increased their positions by a total of 4.09 million shares, 301 holders decreased the positions by a total of 4.98 million shares, and 139 holders held their positions. This works out to a net decrease in ownership of 888711 shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 49 holders initiated new positions by a total of 606542 shares and 36 holders exited their positions by a total of 586562 shares. This nets out to an increase of 19980 shares and is a bullish sign for MKC.

In the last three months, insiders executed a total of 4 trades. 4 of these were buys and 0 were sells. Insider ownership increased by a total of 3276 shares, which suggests that MKC’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 21 buys and 19 sells, and ownership decreased by a net of 218634 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. McCormick & Company, Incorporated (NYSE:MKC)’s short interest is 6.82 million shares, or % of the float. This represents an increase of 18% 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 MKC. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that MKC is a Strong buy, which implies that MKC is expected to outperform 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 bullish. Technical indicators (also) suggest that McCormick & Company, Incorporated (NYSE:MKC) is undervalued.

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