Recent insider trends for Lumber Liquidators Holdings, Inc. (NYSE:LL) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of LL, the data has a lot to say about how the stock might perform going forward.
Institutions own 82.88% of Lumber Liquidators Holdings, Inc. (LL)’s shares. The total value of these holdings, in millions, is $634. Among active positions in the latest quarter, 86 holders increased their positions by a total of 4.49 million shares, 80 holders decreased the positions by a total of 2.15 million shares, and 28 holders held their positions. This works out to a net increase in ownership of 2.33 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 39 holders initiated new positions by a total of 832118 shares and 24 holders exited their positions by a total of 836811 shares. This nets out to a decrease of 4693 shares and is another bearish sign for LL.
In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 715 shares, which suggests that LL’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 14 sells, and ownership increased by a net of 52811 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. Lumber Liquidators Holdings, Inc. (NYSE:LL)’s short interest is 3.65 million shares, or 13.06% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for LL. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that LL is a Strong sell, which implies that LL 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 Lumber Liquidators Holdings, Inc. (NYSE:LL) is overvalued.