Recent insider trends for Booz Allen Hamilton Holding Corporation (NYSE:BAH) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. BAH’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 93.22% of Booz Allen Hamilton Holding Corporation (BAH)’s shares. The total value of these holdings, in millions, is $5,284. Among active positions in the latest quarter, 143 holders increased their positions by a total of 14.62 million shares, 147 holders decreased the positions by a total of 12.81 million shares, and 23 holders held their positions. This works out to a net increase in ownership of 1.81 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 40 holders initiated new positions by a total of 4 million shares and 54 holders exited their positions by a total of 4.21 million shares. This nets out to a decrease of 203928 shares and is another bearish sign for BAH.
In the last three months, insiders executed a total of 28 trades. 16 of these were buys and 12 were sells. Insider ownership decreased by a total of 121991 shares, which suggests that BAH’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 35 buys and 36 sells, and ownership decreased by a net of 17.29 million 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. Booz Allen Hamilton Holding Corporation (NYSE:BAH)’s short interest is 892700 shares, or 0.61% of the float. This represents a decrease of -41% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that BAH is a Weak sell, which implies that BAH 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 bearish. Technical indicators (also) suggest that Booz Allen Hamilton Holding Corporation (NYSE:BAH) is overvalued.