Recent insider trends for Signet Jewelers Limited (NYSE:SIG) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. SIG’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 124.09% of Signet Jewelers Limited (SIG)’s shares. The total value of these holdings, in millions, is $4,808. Among active positions in the latest quarter, 170 holders increased their positions by a total of 11.62 million shares, 169 holders decreased the positions by a total of 10.12 million shares, and 38 holders held their positions. This works out to a net increase in ownership of 1.49 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 40 holders initiated new positions by a total of 1.22 million shares and 57 holders exited their positions by a total of 5.8 million shares. This nets out to a decrease of 4.58 million shares and is another bearish sign for SIG.
In the last three months, insiders executed a total of 8 trades. 2 of these were buys and 6 were sells. Insider ownership increased by a total of 72361 shares, which suggests that SIG’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 32 buys and 32 sells, and ownership increased by a net of 147943 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. Signet Jewelers Limited (NYSE:SIG)’s short interest is 13.86 million shares, or 24.80% of the float. This represents a decrease of -14% in the number of shares being shorted compared to the previous reading, and implies that investors felt less 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 SIG is a Weak sell, which implies that SIG 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 bullish. Technical indicators (also) suggest that Signet Jewelers Limited (NYSE:SIG) is overvalued.