Recent insider trends for SUPERVALU Inc. (NYSE:SVU) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. SVU’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 84.05% of SUPERVALU Inc. (SVU)’s shares. The total value of these holdings, in millions, is $520. Among active positions in the latest quarter, 98 holders increased their positions by a total of 6.1 million shares, 106 holders decreased the positions by a total of 6.98 million shares, and 18 holders held their positions. This works out to a net decrease in ownership of 880074 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 35 holders initiated new positions by a total of 1.44 million shares and 47 holders exited their positions by a total of 1.74 million shares. This nets out to a decrease of 300648 shares and is another bearish sign for SVU.
In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 613 shares, which suggests that SVU’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 1 sells, and ownership decreased by a net of 613 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. SUPERVALU Inc. (NYSE:SVU)’s short interest is 6.25 million shares, or % of the float. This represents an increase of 3% in the number of shares being shorted compared to the previous reading, and implies that investors felt more 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 SVU is a sell, which implies that SVU 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 bearish. Technical indicators (also) suggest that SUPERVALU Inc. (NYSE:SVU) is overvalued.