Recent insider trends for Sequans Communications S.A. (NYSE:SQNS) 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 SQNS, the data has some interesting implications for where the stock might be headed.
Institutions own 31.54% of Sequans Communications S.A. (SQNS)’s shares. The total value of these holdings, in millions, is $50. Among active positions in the latest quarter, 28 holders increased their positions by a total of 7.6 million shares, 7 holders decreased the positions by a total of 1.3 million shares, and 4 holders held their positions. This works out to a net increase in ownership of 6.29 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 17 holders initiated new positions by a total of 4.41 million shares and 1 holders exited their positions by a total of 100146 shares. This nets out to an increase of 4.31 million shares and is a bullish sign for SQNS.
Insider ownership increased by a total of 0 shares, which suggests that SQNS’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Sequans Communications S.A. (NYSE:SQNS)’s short interest is 1.78 million shares, or % of the float. This represents an increase of 31% 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.
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 SQNS. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SQNS is a Strong sell, which implies that SQNS 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 Sequans Communications S.A. (NYSE:SQNS) is overvalued.