Finance

Dissecting the Insider Trading Patterns of BioScrip, Inc. (BIOS)

Recent insider trends for BioScrip, Inc. (NASDAQ:BIOS) 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 BIOS, the data has some interesting implications for where the stock might be headed.

Institutions own 83.55% of BioScrip, Inc. (BIOS)’s shares. The total value of these holdings, in millions, is $230. Among active positions in the latest quarter, 45 holders increased their positions by a total of 5.22 million shares, 47 holders decreased the positions by a total of 7.89 million shares, and 21 holders held their positions. This works out to a net decrease in ownership of 2.68 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 17 holders initiated new positions by a total of 2.22 million shares and 15 holders exited their positions by a total of 305082 shares. This nets out to an increase of 1.92 million shares and is a bullish sign for BIOS.

In the last three months, insiders executed a total of 7 trades. 2 of these were buys and 5 were sells. Insider ownership decreased by a total of 3.4 million shares, which suggests that BIOS’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 8 buys and 7 sells, and ownership decreased by a net of 3.46 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. BioScrip, Inc. (NASDAQ:BIOS)’s short interest is 12.19 million shares, or 16.04% of the float. This represents a decrease of -3% 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.

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 BIOS is a sell, which implies that BIOS is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that BioScrip, Inc. (NASDAQ:BIOS) is overvalued.

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