Recent insider trends for Hanesbrands Inc. (NYSE:HBI) 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 HBI, the data has some interesting implications for where the stock might be headed.
Institutions own 101.42% of Hanesbrands Inc. (HBI)’s shares. The total value of these holdings, in millions, is $7,281. Among active positions in the latest quarter, 325 holders increased their positions by a total of 50.16 million shares, 310 holders decreased the positions by a total of 41.6 million shares, and 93 holders held their positions. This works out to a net increase in ownership of 8.56 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 95 holders initiated new positions by a total of 15.88 million shares and 78 holders exited their positions by a total of 11.96 million shares. This nets out to an increase of 3.92 million shares and is a bullish sign for HBI.
In the last three months, insiders executed a total of 51 trades. 22 of these were buys and 29 were sells. Insider ownership increased by a total of 159074 shares, which suggests that HBI’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 25 buys and 43 sells, and ownership decreased by a net of 359224 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. Hanesbrands Inc. (NYSE:HBI)’s short interest is 62.2 million shares, or 17.21% of the float. This represents an increase of 1% 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.
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 HBI. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that HBI is a sell, which implies that HBI 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 Hanesbrands Inc. (NYSE:HBI) is overvalued.