Finance

Dissecting the Insider Trading Patterns of Editas Medicine, Inc. (EDIT)

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

Institutions own 68.17% of Editas Medicine, Inc. (EDIT)’s shares. The total value of these holdings, in millions, is $1,024. Among active positions in the latest quarter, 82 holders increased their positions by a total of 5.61 million shares, 44 holders decreased the positions by a total of 4.94 million shares, and 25 holders held their positions. This works out to a net increase in ownership of 668001 shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 36 holders initiated new positions by a total of 2.46 million shares and 18 holders exited their positions by a total of 1.6 million shares. This nets out to an increase of 855496 shares and is a bullish sign for EDIT.

In the last three months, insiders executed a total of 12 trades. 12 were sells. Insider ownership decreased by a total of 79648 shares, which suggests that EDIT’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 3 buys and 22 sells, and ownership decreased by a net of 1.1 million shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Editas Medicine, Inc. (NASDAQ:EDIT)’s short interest is 6.02 million shares, or 17.64% 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.

Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that EDIT is a Weak buy, which implies that EDIT 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 Editas Medicine, Inc. (NASDAQ:EDIT) is undervalued.

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