Recent insider trends for NII Holdings, Inc. (NASDAQ:NIHD) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on NIHD is anything to go by, investors should pay attention.
Institutions own 77.48% of NII Holdings, Inc. (NIHD)’s shares. The total value of these holdings, in millions, is $37. Among active positions in the latest quarter, 33 holders increased their positions by a total of 12.5 million shares, 59 holders decreased the positions by a total of 23.95 million shares, and 13 holders held their positions. This works out to a net decrease in ownership of 11.45 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 14 holders initiated new positions by a total of 5.69 million shares and 29 holders exited their positions by a total of 5.36 million shares. This nets out to an increase of 337615 shares and is a bullish sign for NIHD.
Insider ownership increased by a total of 0 shares, which suggests that NIHD’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 4 sells, and ownership decreased by a net of 27873 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. NII Holdings, Inc. (NASDAQ:NIHD)’s short interest is 3.86 million shares, or 4.18% of the float. This represents a decrease of -3% 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 NIHD is a sell, which implies that NIHD 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 NII Holdings, Inc. (NASDAQ:NIHD) is overvalued.