Recent insider trends for Tailored Brands, Inc. (NYSE:TLRD) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on TLRD is anything to go by, investors should pay attention.
Institutions own 114.50% of Tailored Brands, Inc. (TLRD)’s shares. The total value of these holdings, in millions, is $1,268. Among active positions in the latest quarter, 113 holders increased their positions by a total of 11.62 million shares, 77 holders decreased the positions by a total of 7.11 million shares, and 27 holders held their positions. This works out to a net increase in ownership of 4.51 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 46 holders initiated new positions by a total of 3.74 million shares and 24 holders exited their positions by a total of 1.61 million shares. This nets out to an increase of 2.13 million shares and is a bullish sign for TLRD.
In the last three months, insiders executed a total of 2 trades. 2 were sells. Insider ownership decreased by a total of 3786 shares, which suggests that TLRD’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 buys and 17 sells, and ownership decreased by a net of 6.95 million 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. Tailored Brands, Inc. (NYSE:TLRD)’s short interest is 9.37 million shares, or 19.22% of the float. This represents an increase of 4% 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 TLRD. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that TLRD is a Weak buy, which implies that TLRD 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 Tailored Brands, Inc. (NYSE:TLRD) is undervalued.