Recent insider trends for PulteGroup, Inc. (NYSE:PHM) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. PHM’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 85.52% of PulteGroup, Inc. (PHM)’s shares. The total value of these holdings, in millions, is $7,034. Among active positions in the latest quarter, 239 holders increased their positions by a total of 28.05 million shares, 254 holders decreased the positions by a total of 41.22 million shares, and 65 holders held their positions. This works out to a net decrease in ownership of 13.18 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 76 holders initiated new positions by a total of 4.96 million shares and 48 holders exited their positions by a total of 16.14 million shares. This nets out to a decrease of 11.18 million shares and is another bearish sign for PHM.
In the last three months, insiders executed a total of 15 trades. 6 of these were buys and 9 were sells. Insider ownership increased by a total of 45152 shares, which suggests that PHM’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 12 buys and 22 sells, and ownership decreased by a net of 460329 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. PulteGroup, Inc. (NYSE:PHM)’s short interest is 16.17 million shares, or 6.02% of the float. This represents a decrease of -15% 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 PHM is a sell, which implies that PHM 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 PulteGroup, Inc. (NYSE:PHM) is overvalued.