Recent insider trends for Hewlett Packard Enterprise Company (NYSE:HPE) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of HPE, the data has a lot to say about how the stock might perform going forward.
Institutions own 84.34% of Hewlett Packard Enterprise Company (HPE)’s shares. The total value of these holdings, in millions, is $20,795. Among active positions in the latest quarter, 276 holders increased their positions by a total of 97.15 million shares, 341 holders decreased the positions by a total of 125.97 million shares, and 157 holders held their positions. This works out to a net decrease in ownership of 28.82 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 72 holders initiated new positions by a total of 10.03 million shares and 64 holders exited their positions by a total of 46.74 million shares. This nets out to a decrease of 36.71 million shares and is another bearish sign for HPE.
In the last three months, insiders executed a total of 42 trades. 6 of these were buys and 36 were sells. Insider ownership decreased by a total of 1.68 million shares, which suggests that HPE’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 34 buys and 97 sells, and ownership decreased by a net of 8.41 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Hewlett Packard Enterprise Company (NYSE:HPE)’s short interest is 23.95 million shares, or 1.51% of the float. This represents a decrease of -20% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that HPE is a buy, which implies that HPE 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 bearish. Technical indicators (also) suggest that Hewlett Packard Enterprise Company (NYSE:HPE) is undervalued.