Recent insider trends for Marvell Technology Group Ltd. (NASDAQ:MRVL) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. MRVL’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 78.88% of Marvell Technology Group Ltd. (MRVL)’s shares. The total value of these holdings, in millions, is $9,237. Among active positions in the latest quarter, 170 holders increased their positions by a total of 45.13 million shares, 171 holders decreased the positions by a total of 37.47 million shares, and 36 holders held their positions. This works out to a net increase in ownership of 7.66 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 42 holders initiated new positions by a total of 2.34 million shares and 44 holders exited their positions by a total of 7.23 million shares. This nets out to a decrease of 4.89 million shares and is another bearish sign for MRVL.
In the last three months, insiders executed a total of 7 trades. 7 were sells. Insider ownership decreased by a total of 7.83 million shares, which suggests that MRVL’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 35 sells, and ownership decreased by a net of 18.41 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Marvell Technology Group Ltd. (NASDAQ:MRVL)’s short interest is 29.59 million shares, or 7.70% 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 MRVL is a Strong buy, which implies that MRVL 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 Marvell Technology Group Ltd. (NASDAQ:MRVL) is undervalued.