Recent insider trends for Signet Jewelers Limited (NYSE:SIG) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of SIG, the data has a lot to say about how the stock might perform going forward.
Institutions own 124.18% of Signet Jewelers Limited (SIG)’s shares. The total value of these holdings, in millions, is $5,052. Among active positions in the latest quarter, 162 holders increased their positions by a total of 11.98 million shares, 180 holders decreased the positions by a total of 10.07 million shares, and 38 holders held their positions. This works out to a net increase in ownership of 1.91 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 46 holders initiated new positions by a total of 1.6 million shares and 54 holders exited their positions by a total of 6.07 million shares. This nets out to a decrease of 4.47 million shares and is another bearish sign for SIG.
Insider ownership increased by a total of 0 shares, which suggests that SIG’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 32 buys and 32 sells, and ownership increased by a net of 147943 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. Signet Jewelers Limited (NYSE:SIG)’s short interest is 15.47 million shares, or 27.67% 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.
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 SIG. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SIG is a Strong buy, which implies that SIG 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 Signet Jewelers Limited (NYSE:SIG) is undervalued.