Recent insider trends for Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of SPPI, the data has a lot to say about how the stock might perform going forward.
Institutions own 80.09% of Spectrum Pharmaceuticals, Inc. (SPPI)’s shares. The total value of these holdings, in millions, is $1,641. Among active positions in the latest quarter, 105 holders increased their positions by a total of 20.58 million shares, 46 holders decreased the positions by a total of 4.06 million shares, and 23 holders held their positions. This works out to a net increase in ownership of 16.52 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 41 holders initiated new positions by a total of 1.25 million shares and 21 holders exited their positions by a total of 1.18 million shares. This nets out to an increase of 68372 shares and is a bullish sign for SPPI.
In the last three months, insiders executed a total of 8 trades. 4 of these were buys and 4 were sells. Insider ownership decreased by a total of 3.21 million shares, which suggests that SPPI’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 13 buys and 31 sells, and ownership decreased by a net of 3.07 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. Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI)’s short interest is 9.72 million shares, or 16.47% of the float. This represents an increase of 2% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for SPPI. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SPPI is a buy, which implies that SPPI 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 Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) is undervalued.