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Dissecting the Insider Trading Patterns of Activision Blizzard, Inc. (ATVI)

Recent insider trends for Activision Blizzard, Inc. (NASDAQ:ATVI) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of ATVI, the data has some interesting implications for where the stock might be headed.

Institutions own 89.57% of Activision Blizzard, Inc. (ATVI)’s shares. The total value of these holdings, in millions, is $44,691. Among active positions in the latest quarter, 380 holders increased their positions by a total of 74.23 million shares, 334 holders decreased the positions by a total of 62.27 million shares, and 78 holders held their positions. This works out to a net increase in ownership of 11.95 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 107 holders initiated new positions by a total of 7.87 million shares and 69 holders exited their positions by a total of 8 million shares. This nets out to a decrease of 127230 shares and is another bearish sign for ATVI.

In the last three months, insiders executed a total of 16 trades. 4 of these were buys and 12 were sells. Insider ownership decreased by a total of 2.84 million shares, which suggests that ATVI’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 27 buys and 43 sells, and ownership decreased by a net of 11.89 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. Activision Blizzard, Inc. (NASDAQ:ATVI)’s short interest is 10.83 million shares, or 1.56% of the float. This represents an increase of 7% 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 ATVI is a Strong buy, which implies that ATVI 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 Activision Blizzard, Inc. (NASDAQ:ATVI) is undervalued.

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