Recent insider trends for Discovery Communications, Inc. (NASDAQ:DISCA) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of DISCA, the data has a lot to say about how the stock might perform going forward.
Institutions own 118.75% of Discovery Communications, Inc. (DISCA)’s shares. The total value of these holdings, in millions, is $4,175. Among active positions in the latest quarter, 198 holders increased their positions by a total of 21.9 million shares, 211 holders decreased the positions by a total of 13.25 million shares, and 66 holders held their positions. This works out to a net increase in ownership of 8.65 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 46 holders initiated new positions by a total of 8.93 million shares and 64 holders exited their positions by a total of 7.05 million shares. This nets out to an increase of 1.88 million shares and is a bullish sign for DISCA.
In the last three months, insiders executed a total of 11 trades. 6 of these were buys and 5 were sells. Insider ownership increased by a total of 143909 shares, which suggests that DISCA’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 29 buys and 31 sells, and ownership decreased by a net of 842108 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. Discovery Communications, Inc. (NASDAQ:DISCA)’s short interest is 34.21 million shares, or 9.38% of the float. This represents a decrease of -8% 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 DISCA. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that DISCA is a Strong buy, which implies that DISCA 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:DISCA) is undervalued.