Recent insider trends for Walgreens Boots Alliance, Inc. (NASDAQ:WBA) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of WBA, the data has some interesting implications for where the stock might be headed.
Institutions own 63.95% of Walgreens Boots Alliance, Inc. (WBA)’s shares. The total value of these holdings, in millions, is $45,834. Among active positions in the latest quarter, 543 holders increased their positions by a total of 38.57 million shares, 599 holders decreased the positions by a total of 52.36 million shares, and 221 holders held their positions. This works out to a net decrease in ownership of 13.79 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 80 holders initiated new positions by a total of 5.87 million shares and 72 holders exited their positions by a total of 5.27 million shares. This nets out to an increase of 601772 shares and is a bullish sign for WBA.
In the last three months, insiders executed a total of 11 trades. 7 of these were buys and 4 were sells. Insider ownership increased by a total of 112274 shares, which suggests that WBA’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 9 buys and 8 sells, and ownership increased by a net of 123530 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)’s short interest is 21.22 million shares, or 2.27% of the float. This represents an increase of 1% 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.
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 WBA is a Weak sell, which implies that WBA 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 Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is overvalued.