Recent insider trends for Celgene Corporation (NASDAQ:CELG) 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 CELG, the data has some interesting implications for where the stock might be headed.
Institutions own 81.10% of Celgene Corporation (CELG)’s shares. The total value of these holdings, in millions, is $86,587. Among active positions in the latest quarter, 732 holders increased their positions by a total of 42.35 million shares, 564 holders decreased the positions by a total of 24.39 million shares, and 208 holders held their positions. This works out to a net increase in ownership of 17.96 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 111 holders initiated new positions by a total of 3 million shares and 68 holders exited their positions by a total of 5.17 million shares. This nets out to a decrease of 2.17 million shares and is another bearish sign for CELG.
In the last three months, insiders executed a total of 12 trades. 1 of these were buys and 11 were sells. Insider ownership decreased by a total of 97373 shares, which suggests that CELG’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 4 buys and 42 sells, and ownership decreased by a net of 520437 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Celgene Corporation (NASDAQ:CELG)’s short interest is 10.24 million shares, or 1.32% of the float. This represents an increase of 1% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CELG is a Weak sell, which implies that CELG 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 Celgene Corporation (NASDAQ:CELG) is overvalued.