Recent insider trends for Sorrento Therapeutics, Inc. (NASDAQ:SRNE) 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 SRNE, the data has some interesting implications for where the stock might be headed.
Institutions own 15.34% of Sorrento Therapeutics, Inc. (SRNE)’s shares. The total value of these holdings, in millions, is $30. Among active positions in the latest quarter, 30 holders increased their positions by a total of 2.72 million shares, 20 holders decreased the positions by a total of 3.19 million shares, and 6 holders held their positions. This works out to a net decrease in ownership of 466580 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 9 holders initiated new positions by a total of 384470 shares and 11 holders exited their positions by a total of 566719 shares. This nets out to a decrease of 182249 shares and is another bearish sign for SRNE.
In the last three months, insiders executed a total of 3 trades. 3 of these were buys. Insider ownership increased by a total of 157335 shares, which suggests that SRNE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 17 buys and 1 sells, and ownership increased by a net of 8.45 million shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Sorrento Therapeutics, Inc. (NASDAQ:SRNE)’s short interest is 1.93 million shares, or 6.02% of the float. This represents a decrease of -5% 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 SRNE. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SRNE is a Weak buy, which implies that SRNE 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 bullish. Technical indicators (also) suggest that Sorrento Therapeutics, Inc. (NASDAQ:SRNE) is undervalued.