Recent insider trends for Check-Cap Ltd. (NASDAQ:CHEK) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of CHEK, the data has some interesting implications for where the stock might be headed.
Institutions own 16.73% of Check-Cap Ltd. (CHEK)’s shares. The total value of these holdings, in millions, is $3. Among active positions in the latest quarter, 4 holders increased their positions by a total of 41274 shares, 2 holders decreased the positions by a total of 239088 shares, and 10 holders held their positions. This works out to a net decrease in ownership of 197814 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 3 holders initiated new positions by a total of 38684 shares and 0 holders exited their positions by a total of 0 shares. This nets out to an increase of 38684 shares and is a bullish sign for CHEK.
Insider ownership increased by a total of 0 shares, which suggests that CHEK’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 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. Check-Cap Ltd. (NASDAQ:CHEK)’s short interest is 261200 shares, or 2.46% of the float. This represents a decrease of -24% 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.
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 CHEK. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CHEK is a Weak sell, which implies that CHEK 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 Check-Cap Ltd. (NASDAQ:CHEK) is overvalued.