Recent insider trends for Bed Bath & Beyond Inc. (NASDAQ:BBBY) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on BBBY is anything to go by, investors should pay attention.
Institutions own 96.73% of Bed Bath & Beyond Inc. (BBBY)’s shares. The total value of these holdings, in millions, is $3,047. Among active positions in the latest quarter, 199 holders increased their positions by a total of 17.23 million shares, 247 holders decreased the positions by a total of 16.22 million shares, and 63 holders held their positions. This works out to a net increase in ownership of 1.01 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 45 holders initiated new positions by a total of 4.45 million shares and 89 holders exited their positions by a total of 5.43 million shares. This nets out to a decrease of 983828 shares and is another bearish sign for BBBY.
Insider ownership increased by a total of 0 shares, which suggests that BBBY’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 9 buys and 33 sells, and ownership decreased by a net of 501256 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Bed Bath & Beyond Inc. (NASDAQ:BBBY)’s short interest is 20.46 million shares, or % of the float. This represents an increase of 6% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for BBBY. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that BBBY is a Strong sell, which implies that BBBY 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 Bed Bath & Beyond Inc. (NASDAQ:BBBY) is overvalued.