Finance

Dissecting the Insider Trading Patterns of SUPERVALU Inc. (SVU)

Recent insider trends for SUPERVALU Inc. (NYSE:SVU) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on SVU is anything to go by, investors should pay attention.

Institutions own 96.16% of SUPERVALU Inc. (SVU)’s shares. The total value of these holdings, in millions, is $584. Among active positions in the latest quarter, 112 holders increased their positions by a total of 9.98 million shares, 76 holders decreased the positions by a total of 4.1 million shares, and 31 holders held their positions. This works out to a net increase in ownership of 5.88 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 50 holders initiated new positions by a total of 4.95 million shares and 24 holders exited their positions by a total of 1.35 million shares. This nets out to an increase of 3.6 million shares and is a bullish sign for SVU.

In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 613 shares, which suggests that SVU’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 1 sells, and ownership decreased by a net of 613 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. SUPERVALU Inc. (NYSE:SVU)’s short interest is 9.35 million shares, or % 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.

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 SVU is a Weak sell, which implies that SVU is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that SUPERVALU Inc. (NYSE:SVU) is overvalued.

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