Recent insider trends for Party City Holdco Inc. (NYSE:PRTY) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how PRTY might perform in the future.
Institutions own 102.66% of Party City Holdco Inc. (PRTY)’s shares. The total value of these holdings, in millions, is $1,843. Among active positions in the latest quarter, 56 holders increased their positions by a total of 4.34 million shares, 48 holders decreased the positions by a total of 3.14 million shares, and 18 holders held their positions. This works out to a net increase in ownership of 1.2 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 11 holders initiated new positions by a total of 408247 shares and 14 holders exited their positions by a total of 413170 shares. This nets out to a decrease of 4923 shares and is another bearish sign for PRTY.
In the last three months, insiders executed a total of 14 trades. 2 of these were buys and 12 were sells. Insider ownership decreased by a total of 60.54 million shares, which suggests that PRTY’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 4 buys and 14 sells, and ownership decreased by a net of 60.54 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. Party City Holdco Inc. (NYSE:PRTY)’s short interest is 8.18 million shares, or % of the float. This represents an increase of 7% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for PRTY. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PRTY is a Strong buy, which implies that PRTY 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 bearish. Technical indicators (also) suggest that Party City Holdco Inc. (NYSE:PRTY) is undervalued.