Finance

Are Ascena Retail Group, Inc. (ASNA)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for Ascena Retail Group, Inc. (NASDAQ:ASNA) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. ASNA’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 98.63% of Ascena Retail Group, Inc. (ASNA)’s shares. The total value of these holdings, in millions, is $343. Among active positions in the latest quarter, 83 holders increased their positions by a total of 18.59 million shares, 86 holders decreased the positions by a total of 18.78 million shares, and 30 holders held their positions. This works out to a net decrease in ownership of 193881 shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 21 holders initiated new positions by a total of 1.11 million shares and 39 holders exited their positions by a total of 8.02 million shares. This nets out to a decrease of 6.91 million shares and is another bearish sign for ASNA.

In the last three months, insiders executed a total of 9 trades. 9 were sells. Insider ownership decreased by a total of 42488 shares, which suggests that ASNA’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 13 sells, and ownership decreased by a net of 60962 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. Ascena Retail Group, Inc. (NASDAQ:ASNA)’s short interest is 45.39 million shares, or 33.74% of the float. This represents a decrease of -0% 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.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for ASNA. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ASNA is a sell, which implies that ASNA is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Ascena Retail Group, Inc. (NASDAQ:ASNA) is overvalued.

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