Recent insider trends for Signet Jewelers Limited (NYSE:SIG) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on SIG is anything to go by, investors should pay attention.
Institutions own 122.13% of Signet Jewelers Limited (SIG)’s shares. The total value of these holdings, in millions, is $5,131. Among active positions in the latest quarter, 165 holders increased their positions by a total of 11.2 million shares, 175 holders decreased the positions by a total of 11.7 million shares, and 41 holders held their positions. This works out to a net decrease in ownership of 497059 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 57 holders initiated new positions by a total of 1.96 million shares and 42 holders exited their positions by a total of 5.61 million shares. This nets out to a decrease of 3.64 million shares and is another bearish sign for SIG.
Insider ownership increased by a total of 0 shares, which suggests that SIG’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 32 buys and 32 sells, and ownership increased by a net of 147943 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. Signet Jewelers Limited (NYSE:SIG)’s short interest is 15.47 million shares, or 27.67% of the float. This represents an increase of 15% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SIG is a Strong buy, which implies that SIG is expected to outperform 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 Signet Jewelers Limited (NYSE:SIG) is undervalued.