Finance

Analyzing the Insider Data for Oracle Corporation (ORCL)

Recent insider trends for Oracle Corporation (NYSE:ORCL) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. ORCL’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 58.62% of Oracle Corporation (ORCL)’s shares. The total value of these holdings, in millions, is $119,913. Among active positions in the latest quarter, 786 holders increased their positions by a total of 137.12 million shares, 719 holders decreased the positions by a total of 147.26 million shares, and 216 holders held their positions. This works out to a net decrease in ownership of 10.13 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 105 holders initiated new positions by a total of 24.05 million shares and 83 holders exited their positions by a total of 12.37 million shares. This nets out to an increase of 11.68 million shares and is a bullish sign for ORCL.

In the last three months, insiders executed a total of 12 trades. 12 were sells. Insider ownership decreased by a total of 301049 shares, which suggests that ORCL’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 1 buys and 52 sells, and ownership decreased by a net of 9.49 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. Oracle Corporation (NYSE:ORCL)’s short interest is 29.36 million shares, or % of the float. This represents an increase of 15% 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.

Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ORCL is a sell, which implies that ORCL 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 Oracle Corporation (NYSE:ORCL) is overvalued.

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