Recent insider trends for Columbia Sportswear Company (NASDAQ:COLM) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. COLM’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 38.06% of Columbia Sportswear Company (COLM)’s shares. The total value of these holdings, in millions, is $2,040. Among active positions in the latest quarter, 82 holders increased their positions by a total of 1.2 million shares, 74 holders decreased the positions by a total of 1.84 million shares, and 32 holders held their positions. This works out to a net decrease in ownership of 633438 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 21 holders initiated new positions by a total of 173865 shares and 18 holders exited their positions by a total of 730949 shares. This nets out to a decrease of 557084 shares and is another bearish sign for COLM.
In the last three months, insiders executed a total of 7 trades. 7 were sells. Insider ownership decreased by a total of 15066 shares, which suggests that COLM’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 5 buys and 34 sells, and ownership increased by a net of 111058 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Columbia Sportswear Company (NASDAQ:COLM)’s short interest is 650700 shares, or 2.21% of the float. This represents an increase of 5% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for COLM. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that COLM is a buy, which implies that COLM 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 bearish. Technical indicators (also) suggest that Columbia Sportswear Company (NASDAQ:COLM) is undervalued.