Recent insider trends for Fifth Third Bancorp (NASDAQ:FITB) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on FITB is anything to go by, investors should pay attention.
Institutions own 86.76% of Fifth Third Bancorp (FITB)’s shares. The total value of these holdings, in millions, is $18,787. Among active positions in the latest quarter, 208 holders increased their positions by a total of 66.69 million shares, 346 holders decreased the positions by a total of 52.27 million shares, and 129 holders held their positions. This works out to a net increase in ownership of 14.42 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 42 holders initiated new positions by a total of 5.81 million shares and 61 holders exited their positions by a total of 7.08 million shares. This nets out to a decrease of 1.27 million shares and is another bearish sign for FITB.
In the last three months, insiders executed a total of 5 trades. 5 were sells. Insider ownership decreased by a total of 64119 shares, which suggests that FITB’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 24 buys and 47 sells, and ownership decreased by a net of 186081 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. Fifth Third Bancorp (NASDAQ:FITB)’s short interest is 13.34 million shares, or % of the float. This represents a decrease of -28% 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 FITB is a Strong buy, which implies that FITB 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 bearish. Technical indicators (also) suggest that Fifth Third Bancorp (NASDAQ:FITB) is undervalued.