Recent insider trends for Corcept Therapeutics Incorporated (NASDAQ:CORT) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on CORT is anything to go by, investors should pay attention.
Institutions own 64.96% of Corcept Therapeutics Incorporated (CORT)’s shares. The total value of these holdings, in millions, is $1,645. Among active positions in the latest quarter, 117 holders increased their positions by a total of 11.89 million shares, 57 holders decreased the positions by a total of 8.06 million shares, and 30 holders held their positions. This works out to a net increase in ownership of 3.83 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 49 holders initiated new positions by a total of 2.43 million shares and 14 holders exited their positions by a total of 706344 shares. This nets out to an increase of 1.72 million shares and is a bullish sign for CORT.
In the last three months, insiders executed a total of 4 trades. 4 were sells. Insider ownership decreased by a total of 61785 shares, which suggests that CORT’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 2 buys and 17 sells, and ownership decreased by a net of 4.26 million 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. Corcept Therapeutics Incorporated (NASDAQ:CORT)’s short interest is 17.36 million shares, or 19.11% of the float. This represents an increase of 87% 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.
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 CORT is a Strong buy, which implies that CORT 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 Corcept Therapeutics Incorporated (NASDAQ:CORT) is undervalued.