Recent insider trends for Zosano Pharma Corporation (NASDAQ:ZSAN) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of ZSAN, the data has a lot to say about how the stock might perform going forward.
Institutions own 22.64% of Zosano Pharma Corporation (ZSAN)’s shares. The total value of these holdings, in millions, is $9. Among active positions in the latest quarter, 15 holders increased their positions by a total of 902791 shares, 9 holders decreased the positions by a total of 1.15 million shares, and 9 holders held their positions. This works out to a net decrease in ownership of 248011 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 5 holders initiated new positions by a total of 42270 shares and 6 holders exited their positions by a total of 1.04 million shares. This nets out to a decrease of 1 million shares and is another bearish sign for ZSAN.
In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 26666 shares, which suggests that ZSAN’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 4 buys and 3 sells, and ownership decreased by a net of 2.02 million shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Zosano Pharma Corporation (NASDAQ:ZSAN)’s short interest is 3.86 million shares, or 27.44% of the float. This represents a decrease of -19% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ZSAN is a Weak buy, which implies that ZSAN is expected to outperform 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 Zosano Pharma Corporation (NASDAQ:ZSAN) is undervalued.