Recent insider trends for Itau Unibanco Holding S.A. (NYSE:ITUB) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how ITUB might perform in the future.
Institutions own 22.02% of Itau Unibanco Holding S.A. (ITUB)’s shares. The total value of these holdings, in millions, is $9,029. Among active positions in the latest quarter, 141 holders increased their positions by a total of 90.88 million shares, 130 holders decreased the positions by a total of 80.07 million shares, and 51 holders held their positions. This works out to a net increase in ownership of 10.8 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 34 holders initiated new positions by a total of 42.07 million shares and 23 holders exited their positions by a total of 13.72 million shares. This nets out to an increase of 28.35 million shares and is a bullish sign for ITUB.
Insider ownership increased by a total of 0 shares, which suggests that ITUB’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.
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. Itau Unibanco Holding S.A. (NYSE:ITUB)’s short interest is 13.9 million shares, or 0.41% of the float. This represents an increase of 2% 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 ITUB. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ITUB is a sell, which implies that ITUB 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 Itau Unibanco Holding S.A. (NYSE:ITUB) is overvalued.