Recent insider trends for Remark Holdings, Inc. (NASDAQ:MARK) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on MARK is anything to go by, investors should pay attention.
Institutions own 11.84% of Remark Holdings, Inc. (MARK)’s shares. The total value of these holdings, in millions, is $23. Among active positions in the latest quarter, 19 holders increased their positions by a total of 363709 shares, 6 holders decreased the positions by a total of 184427 shares, and 5 holders held their positions. This works out to a net increase in ownership of 179282 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 12 holders initiated new positions by a total of 190425 shares and 1 holders exited their positions by a total of 22222 shares. This nets out to an increase of 168203 shares and is a bullish sign for MARK.
In the last three months, insiders executed a total of 4 trades. 1 of these were buys and 3 were sells. Insider ownership decreased by a total of 33142 shares, which suggests that MARK’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 1 buys and 3 sells, and ownership decreased by a net of 33142 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. Remark Holdings, Inc. (NASDAQ:MARK)’s short interest is 2.65 million shares, or 13.67% of the float. This represents an increase of 2% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for MARK. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that MARK is a Weak sell, which implies that MARK is expected to underperform 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 Remark Holdings, Inc. (NASDAQ:MARK) is overvalued.