Recent insider trends for Regions Financial Corporation (NYSE:RF) 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 RF might perform in the future.
Institutions own 78.21% of Regions Financial Corporation (RF)’s shares. The total value of these holdings, in millions, is $15,695. Among active positions in the latest quarter, 279 holders increased their positions by a total of 74.02 million shares, 293 holders decreased the positions by a total of 80.42 million shares, and 118 holders held their positions. This works out to a net decrease in ownership of 6.4 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 50 holders initiated new positions by a total of 15.26 million shares and 77 holders exited their positions by a total of 15.72 million shares. This nets out to a decrease of 459941 shares and is another bearish sign for RF.
In the last three months, insiders executed a total of 31 trades. 27 of these were buys and 4 were sells. Insider ownership decreased by a total of 72519 shares, which suggests that RF’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 132 buys and 51 sells, and ownership decreased by a net of 1.5 million 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. Regions Financial Corporation (NYSE:RF)’s short interest is 21.11 million shares, or % of the float. This represents a decrease of -14% 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.
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 RF. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that RF is a Strong buy, which implies that RF 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 bearish. Technical indicators (also) suggest that Regions Financial Corporation (NYSE:RF) is undervalued.