Finance

Are First Republic Bank (FRC)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for First Republic Bank (NYSE:FRC) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how FRC might perform in the future.

Institutions own 106.74% of First Republic Bank (FRC)’s shares. The total value of these holdings, in millions, is $15,352. Among active positions in the latest quarter, 243 holders increased their positions by a total of 16.16 million shares, 243 holders decreased the positions by a total of 9.07 million shares, and 52 holders held their positions. This works out to a net increase in ownership of 7.08 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 62 holders initiated new positions by a total of 1.47 million shares and 58 holders exited their positions by a total of 1.35 million shares. This nets out to an increase of 124857 shares and is a bullish sign for FRC.

Insider ownership increased by a total of 0 shares, which suggests that FRC’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: and 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. First Republic Bank (NYSE:FRC)’s short interest is 6.26 million shares, or % of the float. This represents an increase of 37% 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 FRC. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that FRC is a buy, which implies that FRC is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that First Republic Bank (NYSE:FRC) is undervalued.

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