Recent insider trends for Pandora Media, Inc. (NYSE:P) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of P, the data has a lot to say about how the stock might perform going forward.
Institutions own 119.70% of Pandora Media, Inc. (P)’s shares. The total value of these holdings, in millions, is $1,349. Among active positions in the latest quarter, 110 holders increased their positions by a total of 54.08 million shares, 121 holders decreased the positions by a total of 52.12 million shares, and 44 holders held their positions. This works out to a net increase in ownership of 1.96 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 44 holders initiated new positions by a total of 9.79 million shares and 52 holders exited their positions by a total of 18.22 million shares. This nets out to a decrease of 8.43 million shares and is another bearish sign for P.
In the last three months, insiders executed a total of 7 trades. 1 of these were buys and 6 were sells. Insider ownership increased by a total of 375718 shares, which suggests that P’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 27 buys and 42 sells, and ownership increased by a net of 2.85 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. Pandora Media, Inc. (NYSE:P)’s short interest is 56.73 million shares, or 32.53% of the float. This represents a decrease of -10% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that P is a Strong sell, which implies that P 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 Pandora Media, Inc. (NYSE:P) is overvalued.