Finance

Are Ceragon Networks Ltd. (CRNT)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for Ceragon Networks Ltd. (NASDAQ:CRNT) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how CRNT might perform in the future.

Institutions own 13.66% of Ceragon Networks Ltd. (CRNT)’s shares. The total value of these holdings, in millions, is $27. Among active positions in the latest quarter, 22 holders increased their positions by a total of 1.82 million shares, 27 holders decreased the positions by a total of 4.94 million shares, and 11 holders held their positions. This works out to a net decrease in ownership of 3.12 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 9 holders initiated new positions by a total of 1.14 million shares and 16 holders exited their positions by a total of 1.62 million shares. This nets out to a decrease of 476956 shares and is another bearish sign for CRNT.

Insider ownership increased by a total of 0 shares, which suggests that CRNT’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Ceragon Networks Ltd. (NASDAQ:CRNT)’s short interest is 647600 shares, or 1.06% of the float. This represents an increase of 13% 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.

In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for CRNT. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CRNT is a Strong buy, which implies that CRNT 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 bullish. Technical indicators (also) suggest that Ceragon Networks Ltd. (NASDAQ:CRNT) is undervalued.

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