Recent insider trends for LaSalle Hotel Properties (NYSE:LHO) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. LHO’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 111.63% of LaSalle Hotel Properties (LHO)’s shares. The total value of these holdings, in millions, is $3,761. Among active positions in the latest quarter, 124 holders increased their positions by a total of 12.07 million shares, 117 holders decreased the positions by a total of 8.91 million shares, and 26 holders held their positions. This works out to a net increase in ownership of 3.16 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 22 holders initiated new positions by a total of 4.72 million shares and 25 holders exited their positions by a total of 1.17 million shares. This nets out to an increase of 3.55 million shares and is a bullish sign for LHO.
In the last three months, insiders executed a total of 4 trades. 2 of these were buys and 2 were sells. Insider ownership increased by a total of 19056 shares, which suggests that LHO’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 12 buys and 11 sells, and ownership increased by a net of 63172 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. LaSalle Hotel Properties (NYSE:LHO)’s short interest is 8.81 million shares, or 7.84% of the float. This represents an increase of 5% 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 LHO. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that LHO is a Strong buy, which implies that LHO is expected to outperform 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 LaSalle Hotel Properties (NYSE:LHO) is undervalued.