Recent insider trends for Universal Display Corporation (NASDAQ:OLED) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. OLED’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 66.40% of Universal Display Corporation (OLED)’s shares. The total value of these holdings, in millions, is $5,328. Among active positions in the latest quarter, 172 holders increased their positions by a total of 3.7 million shares, 143 holders decreased the positions by a total of 3.38 million shares, and 47 holders held their positions. This works out to a net increase in ownership of 320338 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 68 holders initiated new positions by a total of 971589 shares and 40 holders exited their positions by a total of 466108 shares. This nets out to an increase of 505481 shares and is a bullish sign for OLED.
In the last three months, insiders executed a total of 12 trades. 5 of these were buys and 7 were sells. Insider ownership decreased by a total of 140484 shares, which suggests that OLED’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 34 buys and 62 sells, and ownership decreased by a net of 750347 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. Universal Display Corporation (NASDAQ:OLED)’s short interest is 3.33 million shares, or 7.48% of the float. This represents a decrease of -9% 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 OLED is a buy, which implies that OLED 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 Universal Display Corporation (NASDAQ:OLED) is undervalued.