Recent insider trends for The Procter & Gamble Company (NYSE:PG) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on PG is anything to go by, investors should pay attention.
Institutions own 60.68% of The Procter & Gamble Company (PG)’s shares. The total value of these holdings, in millions, is $142,552. Among active positions in the latest quarter, 896 holders increased their positions by a total of 56.81 million shares, 989 holders decreased the positions by a total of 62.47 million shares, and 243 holders held their positions. This works out to a net decrease in ownership of 5.66 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 84 holders initiated new positions by a total of 4.4 million shares and 72 holders exited their positions by a total of 8.49 million shares. This nets out to a decrease of 4.08 million shares and is another bearish sign for PG.
In the last three months, insiders executed a total of 63 trades. 26 of these were buys and 37 were sells. Insider ownership increased by a total of 29826 shares, which suggests that PG’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 62 buys and 93 sells, and ownership decreased by a net of 756964 shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. The Procter & Gamble Company (NYSE:PG)’s short interest is 31.87 million shares, or % of the float. This represents an increase of 7% 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 PG is a hold, which implies that PG is expected to perform in line with 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 The Procter & Gamble Company (NYSE:PG) is fairly valued.