Finance

Dissecting the Insider Trading Patterns of Loxo Oncology, Inc. (LOXO)

Recent insider trends for Loxo Oncology, Inc. (NASDAQ:LOXO) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. LOXO’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 98.53% of Loxo Oncology, Inc. (LOXO)’s shares. The total value of these holdings, in millions, is $2,771. Among active positions in the latest quarter, 82 holders increased their positions by a total of 3.33 million shares, 74 holders decreased the positions by a total of 3.76 million shares, and 11 holders held their positions. This works out to a net decrease in ownership of 422182 shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 28 holders initiated new positions by a total of 939340 shares and 23 holders exited their positions by a total of 369916 shares. This nets out to an increase of 569424 shares and is a bullish sign for LOXO.

In the last three months, insiders executed a total of 29 trades. 29 were sells. Insider ownership decreased by a total of 2.43 million shares, which suggests that LOXO’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 52 sells, and ownership decreased by a net of 2.54 million 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. Loxo Oncology, Inc. (NASDAQ:LOXO)’s short interest is 4.34 million shares, or 18.02% of the float. This represents a decrease of -4% 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.

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 LOXO. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that LOXO is a Strong buy, which implies that LOXO 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 Loxo Oncology, Inc. (NASDAQ:LOXO) is undervalued.

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