Finance

Are Chico’s FAS, Inc. (CHS)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for Chico’s FAS, Inc. (NYSE:CHS) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of CHS, the data has some interesting implications for where the stock might be headed.

Institutions own 101.49% of Chico’s FAS, Inc. (CHS)’s shares. The total value of these holdings, in millions, is $1,095. Among active positions in the latest quarter, 120 holders increased their positions by a total of 14.92 million shares, 113 holders decreased the positions by a total of 16.54 million shares, and 27 holders held their positions. This works out to a net decrease in ownership of 1.62 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 29 holders initiated new positions by a total of 1.79 million shares and 50 holders exited their positions by a total of 3.88 million shares. This nets out to a decrease of 2.09 million shares and is another bearish sign for CHS.

In the last three months, insiders executed a total of 3 trades. 3 were sells. Insider ownership decreased by a total of 32409 shares, which suggests that CHS’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 21 buys and 27 sells, and ownership increased by a net of 655356 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. Chico’s FAS, Inc. (NYSE:CHS)’s short interest is 12.78 million shares, or 10.53% of the float. This represents a decrease of -6% 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 CHS is a Weak buy, which implies that CHS is expected to outperform 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 bearish. Technical indicators (also) suggest that Chico’s FAS, Inc. (NYSE:CHS) is undervalued.

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