Recent insider trends for The Procter & Gamble Company (NYSE:PG) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of PG, the data has a lot to say about how the stock might perform going forward.
Institutions own 61.73% of The Procter & Gamble Company (PG)’s shares. The total value of these holdings, in millions, is $124,285. Among active positions in the latest quarter, 1,038 holders increased their positions by a total of 57.56 million shares, 1,043 holders decreased the positions by a total of 46.89 million shares, and 213 holders held their positions. This works out to a net increase in ownership of 10.67 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 225 holders initiated new positions by a total of 8 million shares and 72 holders exited their positions by a total of 5.25 million shares. This nets out to an increase of 2.74 million shares and is a bullish sign for PG.
In the last three months, insiders executed a total of 33 trades. 19 of these were buys and 14 were sells. Insider ownership decreased by a total of 19065 shares, which suggests that PG’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 64 buys and 79 sells, and ownership decreased by a net of 244045 shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. The Procter & Gamble Company (NYSE:PG)’s short interest is 34.34 million shares, or 1.36% of the float. This represents an increase of 2% 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 PG. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PG is a Strong sell, which implies that PG 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 bearish. Technical indicators (also) suggest that The Procter & Gamble Company (NYSE:PG) is overvalued.