Recent insider trends for Photronics, Inc. (NASDAQ:PLAB) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. PLAB’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 97.11% of Photronics, Inc. (PLAB)’s shares. The total value of these holdings, in millions, is $606. Among active positions in the latest quarter, 75 holders increased their positions by a total of 6.93 million shares, 72 holders decreased the positions by a total of 7.62 million shares, and 28 holders held their positions. This works out to a net decrease in ownership of 687842 shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 18 holders initiated new positions by a total of 883263 shares and 19 holders exited their positions by a total of 1.4 million shares. This nets out to a decrease of 512989 shares and is another bearish sign for PLAB.
In the last three months, insiders executed a total of 7 trades. 4 of these were buys and 3 were sells. Insider ownership increased by a total of 23932 shares, which suggests that PLAB’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 14 buys and 14 sells, and ownership increased by a net of 130415 shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Photronics, Inc. (NASDAQ:PLAB)’s short interest is 2.74 million shares, or 4.07% of the float. This represents a decrease of -8% 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.
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 PLAB. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PLAB is a Weak buy, which implies that PLAB 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 Photronics, Inc. (NASDAQ:PLAB) is undervalued.