Recent insider trends for RadiSys Corporation (NASDAQ:RSYS) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. RSYS’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 38.27% of RadiSys Corporation (RSYS)’s shares. The total value of these holdings, in millions, is $12. Among active positions in the latest quarter, 40 holders increased their positions by a total of 4.32 million shares, 26 holders decreased the positions by a total of 8.49 million shares, and 10 holders held their positions. This works out to a net decrease in ownership of 4.17 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 15 holders initiated new positions by a total of 2.97 million shares and 11 holders exited their positions by a total of 7.15 million shares. This nets out to a decrease of 4.17 million shares and is another bearish sign for RSYS.
Insider ownership increased by a total of 0 shares, which suggests that RSYS’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 1 sells, and ownership decreased by a net of 3029 shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. RadiSys Corporation (NASDAQ:RSYS)’s short interest is 1.63 million shares, or 5.04% of the float. This represents an increase of 33% 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.
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 RSYS is a sell, which implies that RSYS 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 RadiSys Corporation (NASDAQ:RSYS) is overvalued.