Recent insider trends for bluebird bio, Inc. (NASDAQ:BLUE) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of BLUE, the data has a lot to say about how the stock might perform going forward.
Institutions own 108.15% of bluebird bio, Inc. (BLUE)’s shares. The total value of these holdings, in millions, is $6,185. Among active positions in the latest quarter, 146 holders increased their positions by a total of 5.51 million shares, 88 holders decreased the positions by a total of 2.69 million shares, and 26 holders held their positions. This works out to a net increase in ownership of 2.82 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 50 holders initiated new positions by a total of 1.13 million shares and 18 holders exited their positions by a total of 791846 shares. This nets out to an increase of 334467 shares and is a bullish sign for BLUE.
In the last three months, insiders executed a total of 25 trades. 1 of these were buys and 24 were sells. Insider ownership decreased by a total of 162918 shares, which suggests that BLUE’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 17 buys and 86 sells, and ownership decreased by a net of 278389 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. bluebird bio, Inc. (NASDAQ:BLUE)’s short interest is 4.36 million shares, or 10.76% of the float. This represents a decrease of -44% 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 BLUE is a buy, which implies that BLUE is expected to outperform 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 bearish. Technical indicators (also) suggest that bluebird bio, Inc. (NASDAQ:BLUE) is undervalued.