Recent insider trends for Organovo Holdings, Inc. (NASDAQ:ONVO) 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 ONVO, the data has some interesting implications for where the stock might be headed.
Institutions own 26.17% of Organovo Holdings, Inc. (ONVO)’s shares. The total value of these holdings, in millions, is $46. Among active positions in the latest quarter, 52 holders increased their positions by a total of 3.9 million shares, 34 holders decreased the positions by a total of 1.37 million shares, and 44 holders held their positions. This works out to a net increase in ownership of 2.53 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 12 holders initiated new positions by a total of 1.09 million shares and 10 holders exited their positions by a total of 533858 shares. This nets out to an increase of 559551 shares and is a bullish sign for ONVO.
In the last three months, insiders executed a total of 7 trades. 2 of these were buys and 5 were sells. Insider ownership increased by a total of 296210 shares, which suggests that ONVO’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 7 buys and 23 sells, and ownership increased by a net of 1.12 million shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Organovo Holdings, Inc. (NASDAQ:ONVO)’s short interest is 17.18 million shares, or % of the float. This represents an increase of 3% 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 ONVO is a Weak sell, which implies that ONVO 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 bullish. Technical indicators (also) suggest that Organovo Holdings, Inc. (NASDAQ:ONVO) is overvalued.