Finance

What do Insider Trends Have to Say About JD.com, Inc. (JD)?

Recent insider trends for JD.com, Inc. (NASDAQ:JD) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how JD might perform in the future.

Institutions own 27.23% of JD.com, Inc. (JD)’s shares. The total value of these holdings, in millions, is $25,569. Among active positions in the latest quarter, 260 holders increased their positions by a total of 70.1 million shares, 178 holders decreased the positions by a total of 84.69 million shares, and 49 holders held their positions. This works out to a net decrease in ownership of 14.59 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 72 holders initiated new positions by a total of 18.6 million shares and 39 holders exited their positions by a total of 15.99 million shares. This nets out to an increase of 2.61 million shares and is a bullish sign for JD.

Insider ownership increased by a total of 0 shares, which suggests that JD’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.



Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. JD.com, Inc. (NASDAQ:JD)’s short interest is 42.71 million shares, or 6.41% 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.

In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for JD. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that JD is a hold, which implies that JD is expected to perform in line with 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 JD.com, Inc. (NASDAQ:JD) is fairly valued.

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