Recent insider trends for Appian Corporation (NASDAQ:APPN) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of APPN, the data has a lot to say about how the stock might perform going forward.
Institutions own 96.59% of Appian Corporation (APPN)’s shares. The total value of these holdings, in millions, is $241. Among active positions in the latest quarter, 26 holders increased their positions by a total of 1.08 million shares, 23 holders decreased the positions by a total of 1.1 million shares, and 6 holders held their positions. This works out to a net decrease in ownership of 19146 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 14 holders initiated new positions by a total of 115881 shares and 14 holders exited their positions by a total of 775684 shares. This nets out to a decrease of 659803 shares and is another bearish sign for APPN.
In the last three months, insiders executed a total of 78 trades. 51 of these were buys and 27 were sells. Insider ownership increased by a total of 1.24 million shares, which suggests that APPN’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 89 buys and 27 sells, and ownership increased by a net of 3.57 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. Appian Corporation (NASDAQ:APPN)’s short interest is 1.88 million shares, or % of the float. This represents an increase of 143% 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 APPN is a Strong buy, which implies that APPN 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 bullish. Technical indicators (also) suggest that Appian Corporation (NASDAQ:APPN) is undervalued.