Recent insider trends for The Procter & Gamble Company (NYSE:PG) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of PG, the data has a lot to say about how the stock might perform going forward.
Institutions own 60.93% of The Procter & Gamble Company (PG)’s shares. The total value of these holdings, in millions, is $137,381. Among active positions in the latest quarter, 831 holders increased their positions by a total of 44.04 million shares, 1,049 holders decreased the positions by a total of 48.43 million shares, and 251 holders held their positions. This works out to a net decrease in ownership of 4.39 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 71 holders initiated new positions by a total of 5.13 million shares and 61 holders exited their positions by a total of 2.86 million shares. This nets out to an increase of 2.26 million shares and is a bullish sign for PG.
In the last three months, insiders executed a total of 11 trades. 6 of these were buys and 5 were sells. Insider ownership decreased by a total of 52248 shares, which suggests that PG’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 53 buys and 92 sells, and ownership decreased by a net of 799240 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. The Procter & Gamble Company (NYSE:PG)’s short interest is 26.89 million shares, or % of the float. This represents a decrease of -2% 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.
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 PG. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PG is a hold, which implies that PG is expected to perform in line with 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 bearish. Technical indicators (also) suggest that The Procter & Gamble Company (NYSE:PG) is fairly valued.