Finance

Analyzing the Insider Data for Neos Therapeutics, Inc. (NEOS)

Recent insider trends for Neos Therapeutics, Inc. (NASDAQ:NEOS) 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 NEOS, the data has some interesting implications for where the stock might be headed.

Institutions own 43.73% of Neos Therapeutics, Inc. (NEOS)’s shares. The total value of these holdings, in millions, is $128. Among active positions in the latest quarter, 46 holders increased their positions by a total of 3.87 million shares, 18 holders decreased the positions by a total of 769061 shares, and 10 holders held their positions. This works out to a net increase in ownership of 3.1 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 2.65 million shares and 7 holders exited their positions by a total of 616210 shares. This nets out to an increase of 2.04 million shares and is a bullish sign for NEOS.

In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 14895 shares, which suggests that NEOS’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 5 buys and 1 sells, and ownership increased by a net of 61355 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Neos Therapeutics, Inc. (NASDAQ:NEOS)’s short interest is 2.56 million shares, or 21.52% of the float. This represents a decrease of -29% 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.

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 NEOS. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NEOS is a Strong buy, which implies that NEOS is expected to outperform 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 Neos Therapeutics, Inc. (NASDAQ:NEOS) is undervalued.

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