Recent insider trends for Rite Aid Corporation (NYSE:RAD) 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 RAD might perform in the future.
Institutions own 49.50% of Rite Aid Corporation (RAD)’s shares. The total value of these holdings, in millions, is $1,057. Among active positions in the latest quarter, 142 holders increased their positions by a total of 85.81 million shares, 163 holders decreased the positions by a total of 108.77 million shares, and 88 holders held their positions. This works out to a net decrease in ownership of 22.96 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 43 holders initiated new positions by a total of 20.43 million shares and 63 holders exited their positions by a total of 42.16 million shares. This nets out to a decrease of 21.73 million shares and is another bearish sign for RAD.
Insider ownership increased by a total of 0 shares, which suggests that RAD’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 19 buys and 20 sells, and ownership increased by a net of 4.31 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. Rite Aid Corporation (NYSE:RAD)’s short interest is 157.38 million shares, or 15.18% of the float. This represents a decrease of -3% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that RAD is a Weak buy, which implies that RAD 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 bullish. Technical indicators (also) suggest that Rite Aid Corporation (NYSE:RAD) is undervalued.