Recent insider trends for Vista Outdoor Inc. (NYSE:VSTO) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of VSTO, the data has a lot to say about how the stock might perform going forward.
Institutions own 112.18% of Vista Outdoor Inc. (VSTO)’s shares. The total value of these holdings, in millions, is $915. Among active positions in the latest quarter, 80 holders increased their positions by a total of 7.52 million shares, 88 holders decreased the positions by a total of 5.99 million shares, and 34 holders held their positions. This works out to a net increase in ownership of 1.52 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 24 holders initiated new positions by a total of 1.32 million shares and 27 holders exited their positions by a total of 1.8 million shares. This nets out to a decrease of 475706 shares and is another bearish sign for VSTO.
In the last three months, insiders executed a total of 6 trades. 6 of these were buys. Insider ownership increased by a total of 98756 shares, which suggests that VSTO’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 20 buys and 20 sells, and ownership increased by a net of 193883 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. Vista Outdoor Inc. (NYSE:VSTO)’s short interest is 8.96 million shares, or 15.87% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that VSTO is a Weak sell, which implies that VSTO 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 Vista Outdoor Inc. (NYSE:VSTO) is overvalued.