Recent insider trends for Overstock.com, Inc. (NASDAQ:OSTK) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of OSTK, the data has a lot to say about how the stock might perform going forward.
Institutions own 55.87% of Overstock.com, Inc. (OSTK)’s shares. The total value of these holdings, in millions, is $792. Among active positions in the latest quarter, 92 holders increased their positions by a total of 6.62 million shares, 50 holders decreased the positions by a total of 3.72 million shares, and 9 holders held their positions. This works out to a net increase in ownership of 2.9 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 61 holders initiated new positions by a total of 5.79 million shares and 20 holders exited their positions by a total of 2.38 million shares. This nets out to an increase of 3.41 million shares and is a bullish sign for OSTK.
In the last three months, insiders executed a total of 13 trades. 13 were sells. Insider ownership decreased by a total of 27684 shares, which suggests that OSTK’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 52 sells, and ownership decreased by a net of 132136 shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Overstock.com, Inc. (NASDAQ:OSTK)’s short interest is 5.29 million shares, or 32.27% of the float. This represents a decrease of -5% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that OSTK is a Weak sell, which implies that OSTK 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 Overstock.com, Inc. (NASDAQ:OSTK) is overvalued.