Recent insider trends for Steelcase Inc. (NYSE:SCS) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of SCS, the data has a lot to say about how the stock might perform going forward.
Institutions own 85.91% of Steelcase Inc. (SCS)’s shares. The total value of these holdings, in millions, is $1,095. Among active positions in the latest quarter, 92 holders increased their positions by a total of 7.89 million shares, 91 holders decreased the positions by a total of 11.01 million shares, and 39 holders held their positions. This works out to a net decrease in ownership of 3.12 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 25 holders initiated new positions by a total of 2.25 million shares and 32 holders exited their positions by a total of 3.91 million shares. This nets out to a decrease of 1.66 million shares and is another bearish sign for SCS.
In the last three months, insiders executed a total of 9 trades. 6 of these were buys and 3 were sells. Insider ownership increased by a total of 3901 shares, which suggests that SCS’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 46 buys and 40 sells, and ownership increased by a net of 143422 shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Steelcase Inc. (NYSE:SCS)’s short interest is 1.86 million shares, or 2.23% of the float. This represents an increase of 20% 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.
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 SCS is a hold, which implies that SCS is expected to perform in line with 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 Steelcase Inc. (NYSE:SCS) is fairly valued.