Recent insider trends for Boston Scientific Corporation (NYSE:BSX) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on BSX is anything to go by, investors should pay attention.
Institutions own 95.18% of Boston Scientific Corporation (BSX)’s shares. The total value of these holdings, in millions, is $37,016. Among active positions in the latest quarter, 242 holders increased their positions by a total of 52.03 million shares, 245 holders decreased the positions by a total of 44.16 million shares, and 105 holders held their positions. This works out to a net increase in ownership of 7.87 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 38 holders initiated new positions by a total of 14.16 million shares and 42 holders exited their positions by a total of 2.87 million shares. This nets out to an increase of 11.29 million shares and is a bullish sign for BSX.
In the last three months, insiders executed a total of 11 trades. 11 were sells. Insider ownership decreased by a total of 482207 shares, which suggests that BSX’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 19 buys and 134 sells, and ownership decreased by a net of 1.04 million shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Boston Scientific Corporation (NYSE:BSX)’s short interest is 11.84 million shares, or 0.87% of the float. This represents a decrease of -14% 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 BSX. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that BSX is a sell, which implies that BSX is expected to underperform 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 Boston Scientific Corporation (NYSE:BSX) is overvalued.