Recent insider trends for Exelixis, Inc. (NASDAQ:EXEL) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on EXEL is anything to go by, investors should pay attention.
Institutions own 80.43% of Exelixis, Inc. (EXEL)’s shares. The total value of these holdings, in millions, is $6,063. Among active positions in the latest quarter, 139 holders increased their positions by a total of 24.74 million shares, 116 holders decreased the positions by a total of 25.86 million shares, and 30 holders held their positions. This works out to a net decrease in ownership of 1.13 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 55 holders initiated new positions by a total of 3.51 million shares and 36 holders exited their positions by a total of 3.62 million shares. This nets out to a decrease of 105616 shares and is another bearish sign for EXEL.
In the last three months, insiders executed a total of 21 trades. 6 of these were buys and 15 were sells. Insider ownership decreased by a total of 525442 shares, which suggests that EXEL’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 10 buys and 54 sells, and ownership decreased by a net of 2.48 million 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. Exelixis, Inc. (NASDAQ:EXEL)’s short interest is 19.99 million shares, or 7.12% of the float. This represents an increase of 8% 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.
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 EXEL. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that EXEL is a sell, which implies that EXEL 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 bearish. Technical indicators (also) suggest that Exelixis, Inc. (NASDAQ:EXEL) is overvalued.