Recent insider trends for DSW Inc. (NYSE:DSW) 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 DSW, the data has some interesting implications for where the stock might be headed.
Institutions own 96.00% of DSW Inc. (DSW)’s shares. The total value of these holdings, in millions, is $1,391. Among active positions in the latest quarter, 123 holders increased their positions by a total of 10.12 million shares, 98 holders decreased the positions by a total of 13.32 million shares, and 17 holders held their positions. This works out to a net decrease in ownership of 3.2 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 34 holders initiated new positions by a total of 2.91 million shares and 41 holders exited their positions by a total of 4.67 million shares. This nets out to a decrease of 1.76 million shares and is another bearish sign for DSW.
In the last three months, insiders executed a total of 8 trades. 1 of these were buys and 7 were sells. Insider ownership decreased by a total of 126657 shares, which suggests that DSW’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 22 buys and 26 sells, and ownership decreased by a net of 3.69 million shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. DSW Inc. (NYSE:DSW)’s short interest is 10.96 million shares, or 16.90% of the float. This represents a decrease of -10% 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.
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 DSW is a Weak sell, which implies that DSW 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 DSW Inc. (NYSE:DSW) is overvalued.