Recent insider trends for Square, Inc. (NYSE:SQ) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of SQ, the data has a lot to say about how the stock might perform going forward.
Institutions own 76.24% of Square, Inc. (SQ)’s shares. The total value of these holdings, in millions, is $8,037. Among active positions in the latest quarter, 192 holders increased their positions by a total of 61.35 million shares, 124 holders decreased the positions by a total of 29.29 million shares, and 42 holders held their positions. This works out to a net increase in ownership of 32.06 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 70 holders initiated new positions by a total of 12.14 million shares and 48 holders exited their positions by a total of 10.19 million shares. This nets out to an increase of 1.95 million shares and is a bullish sign for SQ.
In the last three months, insiders executed a total of 32 trades. 13 of these were buys and 19 were sells. Insider ownership decreased by a total of 52470 shares, which suggests that SQ’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 100 buys and 94 sells, and ownership increased by a net of 4.8 million shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Square, Inc. (NYSE:SQ)’s short interest is 33.28 million shares, or % 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.
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 SQ. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SQ is a Strong buy, which implies that SQ 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 bearish. Technical indicators (also) suggest that Square, Inc. (NYSE:SQ) is undervalued.