Recent insider trends for Urban Outfitters, Inc. (NASDAQ:URBN) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on URBN is anything to go by, investors should pay attention.
Institutions own 89.88% of Urban Outfitters, Inc. (URBN)’s shares. The total value of these holdings, in millions, is $2,271. Among active positions in the latest quarter, 114 holders increased their positions by a total of 18.45 million shares, 162 holders decreased the positions by a total of 17.77 million shares, and 26 holders held their positions. This works out to a net increase in ownership of 686454 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 28 holders initiated new positions by a total of 3.43 million shares and 69 holders exited their positions by a total of 8.3 million shares. This nets out to a decrease of 4.87 million shares and is another bearish sign for URBN.
In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 48981 shares, which suggests that URBN’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 3 sells, and ownership decreased by a net of 98664 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. Urban Outfitters, Inc. (NASDAQ:URBN)’s short interest is 21.87 million shares, or 27.43% 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.
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 URBN is a hold, which implies that URBN 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 bearish. Technical indicators (also) suggest that Urban Outfitters, Inc. (NASDAQ:URBN) is fairly valued.