Recent insider trends for Pfizer Inc. (NYSE:PFE) 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 PFE, the data has some interesting implications for where the stock might be headed.
Institutions own 70.58% of Pfizer Inc. (PFE)’s shares. The total value of these holdings, in millions, is $150,953. Among active positions in the latest quarter, 888 holders increased their positions by a total of 143.29 million shares, 988 holders decreased the positions by a total of 186.79 million shares, and 243 holders held their positions. This works out to a net decrease in ownership of 43.5 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 86 holders initiated new positions by a total of 17.68 million shares and 81 holders exited their positions by a total of 6.56 million shares. This nets out to an increase of 11.12 million shares and is a bullish sign for PFE.
In the last three months, insiders executed a total of 10 trades. 10 were sells. Insider ownership decreased by a total of 464521 shares, which suggests that PFE’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 16 buys and 49 sells, and ownership decreased by a net of 1.89 million 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. Pfizer Inc. (NYSE:PFE)’s short interest is 50.67 million shares, or % of the float. This represents an increase of 12% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PFE is a Strong buy, which implies that PFE 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 bearish. Technical indicators (also) suggest that Pfizer Inc. (NYSE:PFE) is undervalued.