Recent insider trends for American Outdoor Brands Corporation (NASDAQ:AOBC) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how AOBC might perform in the future.
Institutions own 74.05% of American Outdoor Brands Corporation (AOBC)’s shares. The total value of these holdings, in millions, is $610. Among active positions in the latest quarter, 83 holders increased their positions by a total of 7.96 million shares, 105 holders decreased the positions by a total of 6.94 million shares, and 45 holders held their positions. This works out to a net increase in ownership of 1.02 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 39 holders initiated new positions by a total of 5.67 million shares and 49 holders exited their positions by a total of 1.57 million shares. This nets out to an increase of 4.1 million shares and is a bullish sign for AOBC.
In the last three months, insiders executed a total of 8 trades. 8 of these were buys. Insider ownership increased by a total of 43312 shares, which suggests that AOBC’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 20 buys and 11 sells, and ownership increased by a net of 151306 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. American Outdoor Brands Corporation (NASDAQ:AOBC)’s short interest is 5.99 million shares, or % of the float. This represents a decrease of -7% 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 AOBC is a Weak sell, which implies that AOBC 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 American Outdoor Brands Corporation (NASDAQ:AOBC) is overvalued.