Recent insider trends for Pandora Media, Inc. (NYSE:P) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how P might perform in the future.
Institutions own 119.11% of Pandora Media, Inc. (P)’s shares. The total value of these holdings, in millions, is $1,354. Among active positions in the latest quarter, 121 holders increased their positions by a total of 84.11 million shares, 127 holders decreased the positions by a total of 58.19 million shares, and 43 holders held their positions. This works out to a net increase in ownership of 25.92 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 43 holders initiated new positions by a total of 47.99 million shares and 66 holders exited their positions by a total of 25.64 million shares. This nets out to an increase of 22.35 million shares and is a bullish sign for P.
In the last three months, insiders executed a total of 11 trades. 4 of these were buys and 7 were sells. Insider ownership increased by a total of 754441 shares, which suggests that P’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 26 buys and 49 sells, and ownership increased by a net of 2.45 million shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Pandora Media, Inc. (NYSE:P)’s short interest is 71.93 million shares, or 41.24% of the float. This represents an increase of 6% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that P is a Strong sell, which implies that P 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 Pandora Media, Inc. (NYSE:P) is overvalued.