Recent insider trends for Walter Investment Management Corp. (NYSE:WAC) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of WAC, the data has some interesting implications for where the stock might be headed.
Institutions own 40.20% of Walter Investment Management Corp. (WAC)’s shares. The total value of these holdings, in millions, is $7. Among active positions in the latest quarter, 12 holders increased their positions by a total of 1.44 million shares, 40 holders decreased the positions by a total of 7.31 million shares, and 11 holders held their positions. This works out to a net decrease in ownership of 5.86 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 6 holders initiated new positions by a total of 1.35 million shares and 20 holders exited their positions by a total of 4.22 million shares. This nets out to a decrease of 2.87 million shares and is another bearish sign for WAC.
In the last three months, insiders executed a total of 1 trades.1 were sells. Insider ownership decreased by a total of 26328 shares, which suggests that WAC’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 8 sells, and ownership decreased by a net of 7515 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Walter Investment Management Corp. (NYSE:WAC)’s short interest is 2.32 million shares, or % of the float. This represents a decrease of -10% 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.
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 WAC is a buy, which implies that WAC 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 Walter Investment Management Corp. (NYSE:WAC) is undervalued.