Recent insider trends for Genworth Financial, Inc. (NYSE:GNW) 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 GNW, the data has some interesting implications for where the stock might be headed.
Institutions own 65.92% of Genworth Financial, Inc. (GNW)’s shares. The total value of these holdings, in millions, is $902. Among active positions in the latest quarter, 120 holders increased their positions by a total of 31.63 million shares, 122 holders decreased the positions by a total of 36.14 million shares, and 59 holders held their positions. This works out to a net decrease in ownership of 4.5 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 31 holders initiated new positions by a total of 11.07 million shares and 27 holders exited their positions by a total of 20.54 million shares. This nets out to a decrease of 9.47 million shares and is another bearish sign for GNW.
In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 576 shares, which suggests that GNW’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 20 sells, and ownership decreased by a net of 227015 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. Genworth Financial, Inc. (NYSE:GNW)’s short interest is 14.6 million shares, or 2.93% of the float. This represents an increase of 10% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that GNW is a Strong sell, which implies that GNW 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 Genworth Financial, Inc. (NYSE:GNW) is overvalued.