Recent insider trends for Organovo Holdings, Inc. (NASDAQ:ONVO) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. ONVO’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 22.78% of Organovo Holdings, Inc. (ONVO)’s shares. The total value of these holdings, in millions, is $31. Among active positions in the latest quarter, 53 holders increased their positions by a total of 3.67 million shares, 49 holders decreased the positions by a total of 4.19 million shares, and 31 holders held their positions. This works out to a net decrease in ownership of 516715 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 17 holders initiated new positions by a total of 899652 shares and 18 holders exited their positions by a total of 1.39 million shares. This nets out to a decrease of 493098 shares and is another bearish sign for ONVO.
In the last three months, insiders executed a total of 7 trades. 2 of these were buys and 5 were sells. Insider ownership increased by a total of 296210 shares, which suggests that ONVO’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 7 buys and 19 sells, and ownership increased by a net of 1.22 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. Organovo Holdings, Inc. (NASDAQ:ONVO)’s short interest is 14.13 million shares, or 14.21% of the float. This represents a decrease of -6% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ONVO is a Strong sell, which implies that ONVO 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 Organovo Holdings, Inc. (NASDAQ:ONVO) is overvalued.