Recent insider trends for Annaly Capital Management, Inc. (NYSE:NLY) 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 NLY, the data has some interesting implications for where the stock might be headed.
Institutions own 55.42% of Annaly Capital Management, Inc. (NLY)’s shares. The total value of these holdings, in millions, is $7,307. Among active positions in the latest quarter, 278 holders increased their positions by a total of 91.86 million shares, 199 holders decreased the positions by a total of 18.79 million shares, and 99 holders held their positions. This works out to a net increase in ownership of 73.07 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 61 holders initiated new positions by a total of 6.66 million shares and 44 holders exited their positions by a total of 1.43 million shares. This nets out to an increase of 5.23 million shares and is a bullish sign for NLY.
In the last three months, insiders executed a total of 5 trades. 5 of these were buys. Insider ownership increased by a total of 463980 shares, which suggests that NLY’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 10 buys, and ownership increased by a net of 595180 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Annaly Capital Management, Inc. (NYSE:NLY)’s short interest is 22.57 million shares, or 2.22% of the float. This represents an increase of 2% 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 NLY is a sell, which implies that NLY is expected to underperform 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 Annaly Capital Management, Inc. (NYSE:NLY) is overvalued.