Markets

Analyzing the Insider Data for Applied Materials, Inc. (AMAT)

Recent insider trends for Applied Materials, Inc. (NASDAQ:AMAT) 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 AMAT, the data has some interesting implications for where the stock might be headed.

Institutions own 81.41% of Applied Materials, Inc. (AMAT)’s shares. The total value of these holdings, in millions, is $44,801. Among active positions in the latest quarter, 391 holders increased their positions by a total of 73.14 million shares, 469 holders decreased the positions by a total of 70.3 million shares, and 134 holders held their positions. This works out to a net increase in ownership of 2.83 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 108 holders initiated new positions by a total of 13.24 million shares and 59 holders exited their positions by a total of 5.08 million shares. This nets out to an increase of 8.16 million shares and is a bullish sign for AMAT.

In the last three months, insiders executed a total of 4 trades. 1 of these were buys and 3 were sells. Insider ownership increased by a total of 81677 shares, which suggests that AMAT’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 19 buys and 25 sells, and ownership increased by a net of 437268 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Applied Materials, Inc. (NASDAQ:AMAT)’s short interest is 14.39 million shares, or % of the float. This represents an increase of 10% 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 AMAT is a Strong buy, which implies that AMAT is expected to outperform 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 Applied Materials, Inc. (NASDAQ:AMAT) is undervalued.

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