Recent insider trends for First Data Corporation (NYSE:FDC) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of FDC, the data has a lot to say about how the stock might perform going forward.
Institutions own 96.36% of First Data Corporation (FDC)’s shares. The total value of these holdings, in millions, is $7,283. Among active positions in the latest quarter, 231 holders increased their positions by a total of 66.73 million shares, 162 holders decreased the positions by a total of 64.55 million shares, and 36 holders held their positions. This works out to a net increase in ownership of 2.18 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 79 holders initiated new positions by a total of 12.45 million shares and 59 holders exited their positions by a total of 12.94 million shares. This nets out to a decrease of 489741 shares and is another bearish sign for FDC.
In the last three months, insiders executed a total of 71 trades. 25 of these were buys and 46 were sells. Insider ownership increased by a total of 1.51 million shares, which suggests that FDC’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 67 buys and 64 sells, and ownership increased by a net of 9.89 million 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. First Data Corporation (NYSE:FDC)’s short interest is 42.87 million shares, or 9.25% of the float. This represents an increase of 29% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that FDC is a sell, which implies that FDC 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 First Data Corporation (NYSE:FDC) is overvalued.