Recent insider trends for PayPal Holdings, Inc. (NASDAQ:PYPL) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of PYPL, the data has a lot to say about how the stock might perform going forward.
Institutions own 82.76% of PayPal Holdings, Inc. (PYPL)’s shares. The total value of these holdings, in millions, is $70,602. Among active positions in the latest quarter, 494 holders increased their positions by a total of 106.53 million shares, 531 holders decreased the positions by a total of 99.01 million shares, and 140 holders held their positions. This works out to a net increase in ownership of 7.52 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 114 holders initiated new positions by a total of 25.45 million shares and 74 holders exited their positions by a total of 17.62 million shares. This nets out to an increase of 7.83 million shares and is a bullish sign for PYPL.
In the last three months, insiders executed a total of 11 trades. 1 of these were buys and 10 were sells. Insider ownership decreased by a total of 386326 shares, which suggests that PYPL’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 18 buys and 55 sells, and ownership decreased by a net of 2.93 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. PayPal Holdings, Inc. (NASDAQ:PYPL)’s short interest is 26.05 million shares, or 2.29% of the float. This represents an increase of 5% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for PYPL. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PYPL is a Strong buy, which implies that PYPL 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 PayPal Holdings, Inc. (NASDAQ:PYPL) is undervalued.