Recent insider trends for Under Armour, Inc. (NYSE:UA) 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 UA might perform in the future.
Institutions own 68.94% of Under Armour, Inc. (UA)’s shares. The total value of these holdings, in millions, is $2,341. Among active positions in the latest quarter, 173 holders increased their positions by a total of 35.77 million shares, 213 holders decreased the positions by a total of 14.25 million shares, and 94 holders held their positions. This works out to a net increase in ownership of 21.52 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 62 holders initiated new positions by a total of 1.55 million shares and 72 holders exited their positions by a total of 5.83 million shares. This nets out to a decrease of 4.29 million shares and is another bearish sign for UA.
In the last three months, insiders executed a total of 9 trades. 8 of these were buys and 1 were sells. Insider ownership increased by a total of 10534 shares, which suggests that UA’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 45 buys and 21 sells, and ownership increased by a net of 549847 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Under Armour, Inc. (NYSE:UA)’s short interest is 35.34 million shares, or 9.56% of the float. This represents an increase of 11% 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 UA is a buy, which implies that UA 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 Under Armour, Inc. (NYSE:UA) is undervalued.