Recent insider trends for Geron Corporation (NASDAQ:GERN) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on GERN is anything to go by, investors should pay attention.
Institutions own 39.36% of Geron Corporation (GERN)’s shares. The total value of these holdings, in millions, is $129. Among active positions in the latest quarter, 48 holders increased their positions by a total of 3.05 million shares, 44 holders decreased the positions by a total of 985539 shares, and 35 holders held their positions. This works out to a net increase in ownership of 2.06 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 14 holders initiated new positions by a total of 168774 shares and 14 holders exited their positions by a total of 268205 shares. This nets out to a decrease of 99431 shares and is another bearish sign for GERN.
In the last three months, insiders executed a total of 3 trades. 3 of these were buys. Insider ownership increased by a total of 18206 shares, which suggests that GERN’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 10 buys, and ownership increased by a net of 56358 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. Geron Corporation (NASDAQ:GERN)’s short interest is 27.77 million shares, or 17.54% of the float. This represents a decrease of -2% 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 GERN. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that GERN is a Strong sell, which implies that GERN 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 Geron Corporation (NASDAQ:GERN) is overvalued.