Finance

Analyzing the Insider Data for Synergy Pharmaceuticals Inc. (SGYP)

Recent insider trends for Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of SGYP, the data has a lot to say about how the stock might perform going forward.

Institutions own 60.70% of Synergy Pharmaceuticals Inc. (SGYP)’s shares. The total value of these holdings, in millions, is $344. Among active positions in the latest quarter, 81 holders increased their positions by a total of 16.13 million shares, 49 holders decreased the positions by a total of 27.12 million shares, and 32 holders held their positions. This works out to a net decrease in ownership of 10.98 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 2.28 million shares and 18 holders exited their positions by a total of 13.67 million shares. This nets out to a decrease of 11.39 million shares and is another bearish sign for SGYP.

In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 8.75 million shares, which suggests that SGYP’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 2 buys and 2 sells, and ownership decreased by a net of 8.76 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. Synergy Pharmaceuticals Inc. (NASDAQ:SGYP)’s short interest is 75.53 million shares, or 43.68% of the float. This represents an increase of 1% 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.

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 SGYP. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SGYP is a Weak buy, which implies that SGYP is expected to outperform 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 Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) is undervalued.

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