Finance

What Recent Ownership Trends Suggest About Alder Biopharmaceuticals, Inc. (ALDR)’s Future Performance

Recent insider trends for Alder Biopharmaceuticals, Inc. (NASDAQ:ALDR) 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 ALDR, the data has some interesting implications for where the stock might be headed.

Institutions own 86.58% of Alder Biopharmaceuticals, Inc. (ALDR)’s shares. The total value of these holdings, in millions, is $660. Among active positions in the latest quarter, 74 holders increased their positions by a total of 11.77 million shares, 66 holders decreased the positions by a total of 6.57 million shares, and 19 holders held their positions. This works out to a net increase in ownership of 5.2 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 19 holders initiated new positions by a total of 4.5 million shares and 32 holders exited their positions by a total of 2.99 million shares. This nets out to an increase of 1.51 million shares and is a bullish sign for ALDR.

In the last three months, insiders executed a total of 1 trades.1 were sells. Insider ownership decreased by a total of 16520 shares, which suggests that ALDR’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 11 sells, and ownership decreased by a net of 53609 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Alder Biopharmaceuticals, Inc. (NASDAQ:ALDR)’s short interest is 7.61 million shares, or 19.70% of the float. This represents an increase of 21% 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 ALDR is a Weak sell, which implies that ALDR is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Alder Biopharmaceuticals, Inc. (NASDAQ:ALDR) is overvalued.

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