Markets

Dissecting the Insider Trading Patterns of Biogen Inc. (BIIB)

Recent insider trends for Biogen Inc. (NASDAQ:BIIB) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of BIIB, the data has a lot to say about how the stock might perform going forward.

Institutions own 89.68% of Biogen Inc. (BIIB)’s shares. The total value of these holdings, in millions, is $59,711. Among active positions in the latest quarter, 426 holders increased their positions by a total of 15.27 million shares, 490 holders decreased the positions by a total of 12.72 million shares, and 170 holders held their positions. This works out to a net increase in ownership of 2.55 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 80 holders initiated new positions by a total of 2.02 million shares and 96 holders exited their positions by a total of 1.83 million shares. This nets out to an increase of 194196 shares and is a bullish sign for BIIB.

In the last three months, insiders executed a total of 4 trades. 2 of these were buys and 2 were sells. Insider ownership decreased by a total of 10939 shares, which suggests that BIIB’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 17 buys and 21 sells, and ownership increased by a net of 36811 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Biogen Inc. (NASDAQ:BIIB)’s short interest is 3.76 million shares, or 1.78% of the float. This represents an increase of 14% 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 BIIB is a Strong buy, which implies that BIIB is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Biogen Inc. (NASDAQ:BIIB) is undervalued.

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