Finance

What Recent Ownership Trends Suggest About Intercept Pharmaceuticals, Inc. (ICPT)’s Future Performance

Recent insider trends for Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on ICPT is anything to go by, investors should pay attention.

Institutions own 78.42% of Intercept Pharmaceuticals, Inc. (ICPT)’s shares. The total value of these holdings, in millions, is $1,051. Among active positions in the latest quarter, 105 holders increased their positions by a total of 4.64 million shares, 70 holders decreased the positions by a total of 3.12 million shares, and 22 holders held their positions. This works out to a net increase in ownership of 1.51 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 37 holders initiated new positions by a total of 1.12 million shares and 31 holders exited their positions by a total of 439830 shares. This nets out to an increase of 684720 shares and is a bullish sign for ICPT.

In the last three months, insiders executed a total of 3 trades. 3 of these were buys. Insider ownership increased by a total of 18258 shares, which suggests that ICPT’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 19 buys and 37 sells, and ownership decreased by a net of 1931 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. Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT)’s short interest is 5.53 million shares, or 30.99% 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.

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 ICPT is a sell, which implies that ICPT is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) is overvalued.

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