Recent insider trends for United Parcel Service, Inc. (NYSE:UPS) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of UPS, the data has a lot to say about how the stock might perform going forward.
Institutions own 68.92% of United Parcel Service, Inc. (UPS)’s shares. The total value of these holdings, in millions, is $53,944. Among active positions in the latest quarter, 609 holders increased their positions by a total of 21.54 million shares, 560 holders decreased the positions by a total of 16.49 million shares, and 185 holders held their positions. This works out to a net increase in ownership of 5.05 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 90 holders initiated new positions by a total of 2.51 million shares and 55 holders exited their positions by a total of 1.5 million shares. This nets out to an increase of 1.01 million shares and is a bullish sign for UPS.
In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 14062 shares, which suggests that UPS’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 2 buys and 36 sells, and ownership decreased by a net of 143080 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. United Parcel Service, Inc. (NYSE:UPS)’s short interest is 9.37 million shares, or 1.35% of the float. This represents a decrease of -11% 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.
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 UPS. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that UPS is a Weak sell, which implies that UPS 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 United Parcel Service, Inc. (NYSE:UPS) is overvalued.