Recent insider trends for Brooks Automation, Inc. (NASDAQ:BRKS) 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 BRKS, the data has some interesting implications for where the stock might be headed.
Institutions own 85.99% of Brooks Automation, Inc. (BRKS)’s shares. The total value of these holdings, in millions, is $1,491. Among active positions in the latest quarter, 120 holders increased their positions by a total of 8.22 million shares, 110 holders decreased the positions by a total of 9.37 million shares, and 20 holders held their positions. This works out to a net decrease in ownership of 1.14 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 36 holders initiated new positions by a total of 2.28 million shares and 43 holders exited their positions by a total of 2.75 million shares. This nets out to a decrease of 477721 shares and is another bearish sign for BRKS.
In the last three months, insiders executed a total of 15 trades. 9 of these were buys and 6 were sells. Insider ownership decreased by a total of 13744 shares, which suggests that BRKS’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 19 buys and 32 sells, and ownership decreased by a net of 72586 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. Brooks Automation, Inc. (NASDAQ:BRKS)’s short interest is 2.16 million shares, or 3.29% of the float. This represents an increase of 55% 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 BRKS is a sell, which implies that BRKS is expected to underperform 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 Brooks Automation, Inc. (NASDAQ:BRKS) is overvalued.