Recent insider trends for Enphase Energy, Inc. (NASDAQ:ENPH) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. ENPH’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 22.86% of Enphase Energy, Inc. (ENPH)’s shares. The total value of these holdings, in millions, is $44. Among active positions in the latest quarter, 17 holders increased their positions by a total of 6.45 million shares, 19 holders decreased the positions by a total of 3.12 million shares, and 17 holders held their positions. This works out to a net increase in ownership of 3.32 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 6 holders initiated new positions by a total of 190364 shares and 14 holders exited their positions by a total of 3.04 million shares. This nets out to a decrease of 2.85 million shares and is another bearish sign for ENPH.
In the last three months, insiders executed a total of 6 trades. 3 of these were buys and 3 were sells. Insider ownership increased by a total of 994568 shares, which suggests that ENPH’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 8 buys and 8 sells, and ownership increased by a net of 2.33 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. Enphase Energy, Inc. (NASDAQ:ENPH)’s short interest is 6.05 million shares, or 10.21% of the float. This represents an increase of 8% 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 ENPH is a Weak sell, which implies that ENPH 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 Enphase Energy, Inc. (NASDAQ:ENPH) is overvalued.