Recent insider trends for Discovery Communications, Inc. (NASDAQ:DISCK) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of DISCK, the data has a lot to say about how the stock might perform going forward.
Institutions own 79.98% of Discovery Communications, Inc. (DISCK)’s shares. The total value of these holdings, in millions, is $3,308. Among active positions in the latest quarter, 154 holders increased their positions by a total of 10.59 million shares, 204 holders decreased the positions by a total of 21.33 million shares, and 82 holders held their positions. This works out to a net decrease in ownership of 10.74 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 36 holders initiated new positions by a total of 969607 shares and 42 holders exited their positions by a total of 2.97 million shares. This nets out to a decrease of 2 million shares and is another bearish sign for DISCK.
Insider ownership increased by a total of 0 shares, which suggests that DISCK’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Discovery Communications, Inc. (NASDAQ:DISCK)’s short interest is 12.33 million shares, or 3.38% of the float. This represents a decrease of -1% 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 DISCK is a Strong sell, which implies that DISCK 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 Discovery Communications, Inc. (NASDAQ:DISCK) is overvalued.