Recent insider trends for DST Systems, Inc. (NYSE:DST) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on DST is anything to go by, investors should pay attention.
Institutions own 85.92% of DST Systems, Inc. (DST)’s shares. The total value of these holdings, in millions, is $4,134. Among active positions in the latest quarter, 135 holders increased their positions by a total of 5.73 million shares, 168 holders decreased the positions by a total of 5.57 million shares, and 45 holders held their positions. This works out to a net increase in ownership of 154939 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 38 holders initiated new positions by a total of 861548 shares and 37 holders exited their positions by a total of 1.01 million shares. This nets out to a decrease of 147082 shares and is another bearish sign for DST.
In the last three months, insiders executed a total of 20 trades. 17 of these were buys and 3 were sells. Insider ownership decreased by a total of 20234 shares, which suggests that DST’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 110 buys and 24 sells, and ownership increased by a net of 271435 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. DST Systems, Inc. (NYSE:DST)’s short interest is 304700 shares, or % of the float. This represents a decrease of -54% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that DST is a Strong buy, which implies that DST 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 DST Systems, Inc. (NYSE:DST) is undervalued.