Recent insider trends for KeyCorp (NYSE:KEY) 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 KEY might perform in the future.
Institutions own 84.48% of KeyCorp (KEY)’s shares. The total value of these holdings, in millions, is $16,026. Among active positions in the latest quarter, 328 holders increased their positions by a total of 97.09 million shares, 299 holders decreased the positions by a total of 66.81 million shares, and 103 holders held their positions. This works out to a net increase in ownership of 30.28 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 77 holders initiated new positions by a total of 34.14 million shares and 60 holders exited their positions by a total of 17.38 million shares. This nets out to an increase of 16.76 million shares and is a bullish sign for KEY.
In the last three months, insiders executed a total of 7 trades. 7 were sells. Insider ownership decreased by a total of 109419 shares, which suggests that KEY’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 15 buys and 63 sells, and ownership decreased by a net of 1.91 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. KeyCorp (NYSE:KEY)’s short interest is 11.88 million shares, or % of the float. This represents an increase of 27% 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.
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 KEY. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that KEY is a sell, which implies that KEY 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 KeyCorp (NYSE:KEY) is overvalued.