Finance

What the Insider Data Suggests About PTC Therapeutics, Inc. (PTCT)

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

Institutions own 85.65% of PTC Therapeutics, Inc. (PTCT)’s shares. The total value of these holdings, in millions, is $779. Among active positions in the latest quarter, 79 holders increased their positions by a total of 7.44 million shares, 50 holders decreased the positions by a total of 4.45 million shares, and 14 holders held their positions. This works out to a net increase in ownership of 2.99 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 29 holders initiated new positions by a total of 3.6 million shares and 16 holders exited their positions by a total of 851278 shares. This nets out to an increase of 2.74 million shares and is a bullish sign for PTCT.

In the last three months, insiders executed a total of 7 trades. 2 of these were buys and 5 were sells. Insider ownership decreased by a total of 1469 shares, which suggests that PTCT’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 6 sells, and ownership decreased by a net of 6.63 million shares.



Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. PTC Therapeutics, Inc. (NASDAQ:PTCT)’s short interest is 6.58 million shares, or 21.33% of the float. This represents a decrease of -2% 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.

Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PTCT is a buy, which implies that PTCT 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 PTC Therapeutics, Inc. (NASDAQ:PTCT) is undervalued.

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