Recent insider trends for Infosys Limited (NYSE:INFY) 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 INFY, the data has some interesting implications for where the stock might be headed.
Institutions own 19.91% of Infosys Limited (INFY)’s shares. The total value of these holdings, in millions, is $7,388. Among active positions in the latest quarter, 152 holders increased their positions by a total of 46.32 million shares, 115 holders decreased the positions by a total of 66.85 million shares, and 42 holders held their positions. This works out to a net decrease in ownership of 20.53 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 43 holders initiated new positions by a total of 14.45 million shares and 33 holders exited their positions by a total of 9.85 million shares. This nets out to an increase of 4.6 million shares and is a bullish sign for INFY.
Insider ownership increased by a total of 0 shares, which suggests that INFY’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.
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. Infosys Limited (NYSE:INFY)’s short interest is 82.58 million shares, or % of the float. This represents an increase of 5% 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 INFY is a Strong buy, which implies that INFY 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 Infosys Limited (NYSE:INFY) is undervalued.