Recent insider trends for KEMET Corporation (NYSE:KEM) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. KEM’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 71.04% of KEMET Corporation (KEM)’s shares. The total value of these holdings, in millions, is $670. Among active positions in the latest quarter, 133 holders increased their positions by a total of 14.88 million shares, 51 holders decreased the positions by a total of 6.59 million shares, and 12 holders held their positions. This works out to a net increase in ownership of 8.29 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 62 holders initiated new positions by a total of 2.94 million shares and 20 holders exited their positions by a total of 2.18 million shares. This nets out to an increase of 757856 shares and is a bullish sign for KEM.
In the last three months, insiders executed a total of 6 trades. 1 of these were buys and 5 were sells. Insider ownership increased by a total of 37475 shares, which suggests that KEM’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 17 buys and 59 sells, and ownership decreased by a net of 479804 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. KEMET Corporation (NYSE:KEM)’s short interest is 1.96 million shares, or 4.94% of the float. This represents a decrease of -24% 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 KEM. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that KEM is a sell, which implies that KEM 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 KEMET Corporation (NYSE:KEM) is overvalued.