Is Institutional Interest Waning in Atkore International Group Inc. (NYSE:ATKR)?

According to the latest company filings with the SEC, institutions owning shares of Atkore International Group Inc. (NYSE:ATKR) have decreased their positions by -1.58%.  Institutions now own 99.90% of the company.

As many investors probably already know, there is no one way to select winning stocks. There are plenty of different theories and ideas out there, and it may become overwhelming to look at all of them. Individual investors who manage their own money may have to dedicate an ample amount of time to find a strategy that works for them. Understanding portfolio diversification, personal risk tolerance, and time horizon may be a good place for the investor to start. Because there is no guarantee that past performance will indicate future results, investors may have to be willing to come at the market from a few different angles.

Big organizations that control vast sums of money, such as mutual funds, insurance companies or pension funds, that buy securities are known as “institutional investors”.  Unlike individual investors, institutional investors trade in massive blocks of 10,000 or more shares per transaction.  The sheer size of these trades significantly affect the price of a share. 

TECHNICAL ANALYSIS

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

Atkore International Group Inc. (NYSE:ATKR)’s RSI (Relative Strength Index) is 52.53.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Atkore International Group Inc.’s EPS is 2.29.  Their EPS should be compared to other companies in the Industrial Goods sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Atkore International Group Inc.’s  P/E ratio is 11.38. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Atkore International Group Inc.’s  PEG is 1.14.

Doing standard fundamental stock analysis is fairly straightforward. These days, investors have easy access to large amounts of available data. The biggest problem for the average investor may be dedicating the time to actually doing the research. One goal of studying the fundamentals is to establish the true value of a stock compared to how it is currently trading in the marketplace. Many investors believe that identifying quality stocks should be a cornerstone of portfolio construction. Obtaining as much knowledge as possible about a stock can help make the buying decisions a little easier. Some investors may trust other people or products to do the required research, but others may wish to roll up the sleeves and do all the analysis themselves.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 56.40%.  Calculated by dividing Atkore International Group Inc.’s annual earnings by its total assets, investors will note a return on assets of 10.10%.  Finally, Atkore International Group Inc.’s return on investment stands at 11.90% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 2.40 for Atkore International Group Inc. (NYSE:ATKR).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.