Recent insider trends for Editas Medicine, Inc. (NASDAQ:EDIT) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how EDIT might perform in the future.
Institutions own 64.10% of Editas Medicine, Inc. (EDIT)’s shares. The total value of these holdings, in millions, is $1,046. Among active positions in the latest quarter, 67 holders increased their positions by a total of 4.82 million shares, 40 holders decreased the positions by a total of 4.76 million shares, and 27 holders held their positions. This works out to a net increase in ownership of 60131 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 28 holders initiated new positions by a total of 2.03 million shares and 16 holders exited their positions by a total of 1.34 million shares. This nets out to an increase of 694897 shares and is a bullish sign for EDIT.
In the last three months, insiders executed a total of 10 trades. 10 were sells. Insider ownership decreased by a total of 59648 shares, which suggests that EDIT’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 3 buys and 19 sells, and ownership decreased by a net of 1.07 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. Editas Medicine, Inc. (NASDAQ:EDIT)’s short interest is 6.28 million shares, or 18.39% of the float. This represents an increase of 1% 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.
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 EDIT is a Strong buy, which implies that EDIT 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 bearish. Technical indicators (also) suggest that Editas Medicine, Inc. (NASDAQ:EDIT) is undervalued.