Recent insider trends for Adamas Pharmaceuticals, Inc. (NASDAQ:ADMS) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on ADMS is anything to go by, investors should pay attention.
Institutions own 69.36% of Adamas Pharmaceuticals, Inc. (ADMS)’s shares. The total value of these holdings, in millions, is $324. Among active positions in the latest quarter, 32 holders increased their positions by a total of 1.2 million shares, 32 holders decreased the positions by a total of 1.45 million shares, and 17 holders held their positions. This works out to a net decrease in ownership of 248276 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 11 holders initiated new positions by a total of 210830 shares and 2 holders exited their positions by a total of 16472 shares. This nets out to an increase of 194358 shares and is a bullish sign for ADMS.
In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 2500 shares, which suggests that ADMS’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 8 buys and 7 sells, and ownership decreased by a net of 282485 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. Adamas Pharmaceuticals, Inc. (NASDAQ:ADMS)’s short interest is 6.72 million shares, or 56.90% of the float. This represents an increase of 4% 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 ADMS is a Weak buy, which implies that ADMS 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 bullish. Technical indicators (also) suggest that Adamas Pharmaceuticals, Inc. (NASDAQ:ADMS) is undervalued.