Recent insider trends for Teva Pharmaceutical Industries Limited (NYSE:TEVA) 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 TEVA, the data has some interesting implications for where the stock might be headed.
Institutions own 50.24% of Teva Pharmaceutical Industries Limited (TEVA)’s shares. The total value of these holdings, in millions, is $9,447. Among active positions in the latest quarter, 208 holders increased their positions by a total of 66.49 million shares, 349 holders decreased the positions by a total of 103.8 million shares, and 74 holders held their positions. This works out to a net decrease in ownership of 37.31 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 78 holders initiated new positions by a total of 9.55 million shares and 128 holders exited their positions by a total of 18.55 million shares. This nets out to a decrease of 9 million shares and is another bearish sign for TEVA.
Insider ownership increased by a total of 0 shares, which suggests that TEVA’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: and ownership increased by a net of 0 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Teva Pharmaceutical Industries Limited (NYSE:TEVA)’s short interest is 65.7 million shares, or 6.98% of the float. This represents a decrease of -7% 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.
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 TEVA is a Weak buy, which implies that TEVA 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 Teva Pharmaceutical Industries Limited (NYSE:TEVA) is undervalued.