Recent insider trends for Signet Jewelers Limited (NYSE:SIG) 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 SIG, the data has some interesting implications for where the stock might be headed.
Institutions own 119.92% of Signet Jewelers Limited (SIG)’s shares. The total value of these holdings, in millions, is $3,556. Among active positions in the latest quarter, 182 holders increased their positions by a total of 10.78 million shares, 188 holders decreased the positions by a total of 10.44 million shares, and 35 holders held their positions. This works out to a net increase in ownership of 335017 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 81 holders initiated new positions by a total of 3.41 million shares and 55 holders exited their positions by a total of 2.36 million shares. This nets out to an increase of 1.05 million shares and is a bullish sign for SIG.
In the last three months, insiders executed a total of 4 trades. 3 of these were buys and 1 were sells. Insider ownership increased by a total of 108738 shares, which suggests that SIG’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 35 buys and 33 sells, and ownership increased by a net of 256681 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. Signet Jewelers Limited (NYSE:SIG)’s short interest is 11.72 million shares, or 24.12% 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.
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 SIG is a Strong sell, which implies that SIG 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 Signet Jewelers Limited (NYSE:SIG) is overvalued.