Recent insider trends for CBS Corporation (NYSE:CBS) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. CBS’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 83.92% of CBS Corporation (CBS)’s shares. The total value of these holdings, in millions, is $17,265. Among active positions in the latest quarter, 314 holders increased their positions by a total of 26.04 million shares, 358 holders decreased the positions by a total of 25.09 million shares, and 112 holders held their positions. This works out to a net increase in ownership of 955848 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 70 holders initiated new positions by a total of 5.34 million shares and 70 holders exited their positions by a total of 3.99 million shares. This nets out to an increase of 1.36 million shares and is a bullish sign for CBS.
In the last three months, insiders executed a total of 17 trades. 17 were sells. Insider ownership decreased by a total of 1.05 million shares, which suggests that CBS’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 42 buys and 101 sells, and ownership decreased by a net of 2.37 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. CBS Corporation (NYSE:CBS)’s short interest is 19.77 million shares, or 5.39% of the float. This represents an increase of 60% 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 CBS. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CBS is a sell, which implies that CBS 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 CBS Corporation (NYSE:CBS) is overvalued.