Recent insider trends for Intellia Therapeutics Inc. (NASDAQ:NTLA) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on NTLA is anything to go by, investors should pay attention.
Institutions own 54.28% of Intellia Therapeutics Inc. (NTLA)’s shares. The total value of these holdings, in millions, is $481. Among active positions in the latest quarter, 63 holders increased their positions by a total of 3.82 million shares, 29 holders decreased the positions by a total of 1.75 million shares, and 18 holders held their positions. This works out to a net increase in ownership of 2.07 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 24 holders initiated new positions by a total of 1.05 million shares and 14 holders exited their positions by a total of 1.47 million shares. This nets out to a decrease of 417977 shares and is another bearish sign for NTLA.
In the last three months, insiders executed a total of 5 trades. 5 were sells. Insider ownership decreased by a total of 2.41 million shares, which suggests that NTLA’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 8 buys and 17 sells, and ownership decreased by a net of 4.37 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Intellia Therapeutics Inc. (NASDAQ:NTLA)’s short interest is 4.07 million shares, or 20.86% of the float. This represents an increase of 6% 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 NTLA. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NTLA is a buy, which implies that NTLA 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 Intellia Therapeutics Inc. (NASDAQ:NTLA) is undervalued.