Recent insider trends for Platform Specialty Products Corporation (NYSE:PAH) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how PAH might perform in the future.
Institutions own 96.24% of Platform Specialty Products Corporation (PAH)’s shares. The total value of these holdings, in millions, is $3,245. Among active positions in the latest quarter, 121 holders increased their positions by a total of 25.43 million shares, 79 holders decreased the positions by a total of 24.39 million shares, and 25 holders held their positions. This works out to a net increase in ownership of 1.04 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 32 holders initiated new positions by a total of 7.56 million shares and 24 holders exited their positions by a total of 1.19 million shares. This nets out to an increase of 6.37 million shares and is a bullish sign for PAH.
In the last three months, insiders executed a total of 7 trades. 7 of these were buys and 0 were sells. Insider ownership increased by a total of 138033 shares, which suggests that PAH’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 10 buys and 3 sells, and ownership decreased by a net of 1.1 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Platform Specialty Products Corporation (NYSE:PAH)’s short interest is 21.09 million shares, or % of the float. This represents a decrease of -2% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for PAH. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PAH is a Strong sell, which implies that PAH 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 bullish. Technical indicators (also) suggest that Platform Specialty Products Corporation (NYSE:PAH) is overvalued.