Recent insider trends for Fitbit, Inc. (NYSE:FIT) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on FIT is anything to go by, investors should pay attention.
Institutions own 62.57% of Fitbit, Inc. (FIT)’s shares. The total value of these holdings, in millions, is $657. Among active positions in the latest quarter, 111 holders increased their positions by a total of 29.56 million shares, 75 holders decreased the positions by a total of 13.25 million shares, and 43 holders held their positions. This works out to a net increase in ownership of 16.31 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 49 holders initiated new positions by a total of 9.65 million shares and 28 holders exited their positions by a total of 5.78 million shares. This nets out to an increase of 3.87 million shares and is a bullish sign for FIT.
In the last three months, insiders executed a total of 15 trades. 3 of these were buys and 12 were sells. Insider ownership decreased by a total of 76437 shares, which suggests that FIT’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 23 buys and 59 sells, and ownership decreased by a net of 1.19 million shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Fitbit, Inc. (NYSE:FIT)’s short interest is 38.01 million shares, or 19.90% of the float. This represents an increase of 1% 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.
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 FIT is a Weak sell, which implies that FIT 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 Fitbit, Inc. (NYSE:FIT) is overvalued.