Recent insider trends for Advance Auto Parts, Inc. (NYSE:AAP) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. AAP’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 106.29% of Advance Auto Parts, Inc. (AAP)’s shares. The total value of these holdings, in millions, is $6,460. Among active positions in the latest quarter, 241 holders increased their positions by a total of 17.76 million shares, 214 holders decreased the positions by a total of 16.1 million shares, and 57 holders held their positions. This works out to a net increase in ownership of 1.66 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 60 holders initiated new positions by a total of 6 million shares and 77 holders exited their positions by a total of 7.45 million shares. This nets out to a decrease of 1.46 million shares and is another bearish sign for AAP.
In the last three months, insiders executed a total of 6 trades. 5 of these were buys and 1 were sells. Insider ownership increased by a total of 6601 shares, which suggests that AAP’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 61 buys and 26 sells, and ownership increased by a net of 420924 shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Advance Auto Parts, Inc. (NYSE:AAP)’s short interest is 7.4 million shares, or 10.11% of the float. This represents an increase of 0% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that AAP is a Weak buy, which implies that AAP 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 Advance Auto Parts, Inc. (NYSE:AAP) is undervalued.