Finance

Dissecting the Insider Trading Patterns of Evolent Health, Inc. (EVH)

Recent insider trends for Evolent Health, Inc. (NYSE:EVH) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on EVH is anything to go by, investors should pay attention.

Institutions own 92.93% of Evolent Health, Inc. (EVH)’s shares. The total value of these holdings, in millions, is $795. Among active positions in the latest quarter, 108 holders increased their positions by a total of 20.98 million shares, 61 holders decreased the positions by a total of 7.03 million shares, and 23 holders held their positions. This works out to a net increase in ownership of 13.95 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 40 holders initiated new positions by a total of 7.7 million shares and 20 holders exited their positions by a total of 1.33 million shares. This nets out to an increase of 6.37 million shares and is a bullish sign for EVH.

In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 6684 shares, which suggests that EVH’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 21 buys and 59 sells, and ownership decreased by a net of 7.77 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. Evolent Health, Inc. (NYSE:EVH)’s short interest is 17.63 million shares, or % of the float. This represents a decrease of -4% 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.

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 EVH. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that EVH is a Strong sell, which implies that EVH 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 bullish. Technical indicators (also) suggest that Evolent Health, Inc. (NYSE:EVH) is overvalued.

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