Finance

Dissecting the Insider Trading Patterns of Signet Jewelers Limited (SIG)

Recent insider trends for Signet Jewelers Limited (NYSE:SIG) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of SIG, the data has a lot to say about how the stock might perform going forward.

Institutions own 115.44% of Signet Jewelers Limited (SIG)’s shares. The total value of these holdings, in millions, is $3,681. Among active positions in the latest quarter, 147 holders increased their positions by a total of 6.23 million shares, 179 holders decreased the positions by a total of 10.66 million shares, and 52 holders held their positions. This works out to a net decrease in ownership of 4.42 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 65 holders initiated new positions by a total of 2.16 million shares and 31 holders exited their positions by a total of 1.94 million shares. This nets out to an increase of 229300 shares and is a bullish sign for SIG.

In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 33962 shares, which suggests that SIG’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 33 buys and 32 sells, and ownership increased by a net of 181905 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Signet Jewelers Limited (NYSE:SIG)’s short interest is 12.79 million shares, or 22.88% of the float. This represents an increase of 1% 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.

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 SIG is a Strong sell, which implies that SIG is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Signet Jewelers Limited (NYSE:SIG) is overvalued.

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