Recent insider trends for Discovery Communications, Inc. (NASDAQ:DISCK) 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 DISCK, the data has some interesting implications for where the stock might be headed.
Institutions own 83.67% of Discovery Communications, Inc. (DISCK)’s shares. The total value of these holdings, in millions, is $3,966. Among active positions in the latest quarter, 170 holders increased their positions by a total of 31.28 million shares, 186 holders decreased the positions by a total of 20.39 million shares, and 75 holders held their positions. This works out to a net increase in ownership of 10.89 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 37 holders initiated new positions by a total of 13.55 million shares and 49 holders exited their positions by a total of 13.98 million shares. This nets out to a decrease of 422232 shares and is another bearish sign for DISCK.
Insider ownership increased by a total of 0 shares, which suggests that DISCK’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Discovery Communications, Inc. (NASDAQ:DISCK)’s short interest is 25.76 million shares, or 7.06% of the float. This represents a decrease of -7% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for DISCK. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that DISCK is a Strong buy, which implies that DISCK 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 bullish. Technical indicators (also) suggest that Discovery Communications, Inc. (NASDAQ:DISCK) is undervalued.