Recent insider trends for U.S. Bancorp (NYSE:USB) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of USB, the data has a lot to say about how the stock might perform going forward.
Institutions own 76.18% of U.S. Bancorp (USB)’s shares. The total value of these holdings, in millions, is $65,249. Among active positions in the latest quarter, 525 holders increased their positions by a total of 47.88 million shares, 646 holders decreased the positions by a total of 68.73 million shares, and 245 holders held their positions. This works out to a net decrease in ownership of 20.85 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 76 holders initiated new positions by a total of 6.22 million shares and 75 holders exited their positions by a total of 4.81 million shares. This nets out to an increase of 1.41 million shares and is a bullish sign for USB.
In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 640 shares, which suggests that USB’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 17 buys and 55 sells, and ownership decreased by a net of 1.11 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. U.S. Bancorp (NYSE:USB)’s short interest is 14.41 million shares, or 0.90% of the float. This represents a decrease of -6% 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.
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 USB is a sell, which implies that USB 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 U.S. Bancorp (NYSE:USB) is overvalued.