Recent insider trends for J. C. Penney Company, Inc. (NYSE:JCP) 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 JCP, the data has some interesting implications for where the stock might be headed.
Institutions own 74.12% of J. C. Penney Company, Inc. (JCP)’s shares. The total value of these holdings, in millions, is $818. Among active positions in the latest quarter, 125 holders increased their positions by a total of 33.44 million shares, 113 holders decreased the positions by a total of 23.22 million shares, and 55 holders held their positions. This works out to a net increase in ownership of 10.22 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 48 holders initiated new positions by a total of 20.46 million shares and 45 holders exited their positions by a total of 12.27 million shares. This nets out to an increase of 8.19 million shares and is a bullish sign for JCP.
In the last three months, insiders executed a total of 4 trades. 2 of these were buys and 2 were sells. Insider ownership decreased by a total of 267291 shares, which suggests that JCP’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 43 buys and 11 sells, and ownership increased by a net of 1.8 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. J. C. Penney Company, Inc. (NYSE:JCP)’s short interest is 115.73 million shares, or 39.43% of the float. This represents a decrease of -12% 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.
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 JCP. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that JCP is a Weak buy, which implies that JCP 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 J. C. Penney Company, Inc. (NYSE:JCP) is undervalued.