Finance

Should You Invest in Platform Specialty Products Corporation (PAH)? A Look at the Insider Trends

Recent insider trends for Platform Specialty Products Corporation (NYSE:PAH) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on PAH is anything to go by, investors should pay attention.

Institutions own 95.51% of Platform Specialty Products Corporation (PAH)’s shares. The total value of these holdings, in millions, is $2,813. Among active positions in the latest quarter, 92 holders increased their positions by a total of 19.21 million shares, 97 holders decreased the positions by a total of 23.74 million shares, and 33 holders held their positions. This works out to a net decrease in ownership of 4.53 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 22 holders initiated new positions by a total of 5.3 million shares and 35 holders exited their positions by a total of 2.98 million shares. This nets out to an increase of 2.32 million shares and is a bullish sign for PAH.

In the last three months, insiders executed a total of 9 trades. 7 of these were buys and 2 were sells. Insider ownership decreased by a total of 6.57 million shares, which suggests that PAH’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 8 buys and 4 sells, and ownership decreased by a net of 6.58 million shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Platform Specialty Products Corporation (NYSE:PAH)’s short interest is 14.58 million shares, or % of the float. This represents a decrease of -9% 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.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for PAH. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PAH is a Strong sell, which implies that PAH 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 Platform Specialty Products Corporation (NYSE:PAH) is overvalued.

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