Recent insider trends for Alibaba Group Holding Limited (NYSE:BABA) 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 BABA, the data has some interesting implications for where the stock might be headed.
Institutions own 37.58% of Alibaba Group Holding Limited (BABA)’s shares. The total value of these holdings, in millions, is $171,990. Among active positions in the latest quarter, 590 holders increased their positions by a total of 107.03 million shares, 321 holders decreased the positions by a total of 63.12 million shares, and 123 holders held their positions. This works out to a net increase in ownership of 43.91 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 165 holders initiated new positions by a total of 25.15 million shares and 60 holders exited their positions by a total of 5.82 million shares. This nets out to an increase of 19.33 million shares and is a bullish sign for BABA.
Insider ownership increased by a total of 0 shares, which suggests that BABA’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: and ownership increased by a net of 0 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. Alibaba Group Holding Limited (NYSE:BABA)’s short interest is 139.8 million shares, or % of the float. This represents an increase of 2% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for BABA. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that BABA is a Strong buy, which implies that BABA is expected to outperform 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 Alibaba Group Holding Limited (NYSE:BABA) is undervalued.