Finance

Dissecting the Insider Trading Patterns of Apple Inc. (AAPL)

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

Institutions own 61.23% of Apple Inc. (AAPL)’s shares. The total value of these holdings, in millions, is $550,181. Among active positions in the latest quarter, 970 holders increased their positions by a total of 75.42 million shares, 1,413 holders decreased the positions by a total of 126.19 million shares, and 212 holders held their positions. This works out to a net decrease in ownership of 50.77 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 85 holders initiated new positions by a total of 19.4 million shares and 62 holders exited their positions by a total of 4.98 million shares. This nets out to an increase of 14.42 million shares and is a bullish sign for AAPL.

In the last three months, insiders executed a total of 23 trades. 2 of these were buys and 21 were sells. Insider ownership decreased by a total of 796323 shares, which suggests that AAPL’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 100 sells, and ownership decreased by a net of 3.16 million shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Apple Inc. (NASDAQ:AAPL)’s short interest is 39.37 million shares, or % of the float. This represents a decrease of -8% 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.

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 AAPL is a Weak buy, which implies that AAPL 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 Apple Inc. (NASDAQ:AAPL) is undervalued.

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