Recent insider trends for BioAmber Inc. (NYSE:BIOA) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on BIOA is anything to go by, investors should pay attention.
Institutions own 30.14% of BioAmber Inc. (BIOA)’s shares. The total value of these holdings, in millions, is $3. Among active positions in the latest quarter, 13 holders increased their positions by a total of 8.42 million shares, 18 holders decreased the positions by a total of 8.97 million shares, and 6 holders held their positions. This works out to a net decrease in ownership of 548312 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 2 holders initiated new positions by a total of 31718 shares and 11 holders exited their positions by a total of 8.14 million shares. This nets out to a decrease of 8.11 million shares and is another bearish sign for BIOA.
In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 40000 shares, which suggests that BIOA’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 12 buys, and ownership increased by a net of 378331 shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. BioAmber Inc. (NYSE:BIOA)’s short interest is 3.48 million shares, or % of the float. This represents a decrease of -1% 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 BIOA is a Strong sell, which implies that BIOA 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 bullish. Technical indicators (also) suggest that BioAmber Inc. (NYSE:BIOA) is overvalued.