Recent insider trends for Adamas Pharmaceuticals, Inc. (NASDAQ:ADMS) 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 ADMS, the data has some interesting implications for where the stock might be headed.
Institutions own 76.34% of Adamas Pharmaceuticals, Inc. (ADMS)’s shares. The total value of these holdings, in millions, is $501. Among active positions in the latest quarter, 45 holders increased their positions by a total of 3.52 million shares, 32 holders decreased the positions by a total of 1.89 million shares, and 15 holders held their positions. This works out to a net increase in ownership of 1.63 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 19 holders initiated new positions by a total of 1.07 million shares and 3 holders exited their positions by a total of 248041 shares. This nets out to an increase of 818783 shares and is a bullish sign for ADMS.
In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 2500 shares, which suggests that ADMS’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 7 buys and 7 sells, and ownership decreased by a net of 287172 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. Adamas Pharmaceuticals, Inc. (NASDAQ:ADMS)’s short interest is 8.38 million shares, or 70.94% of the float. This represents an increase of 13% 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 ADMS. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ADMS is a Strong buy, which implies that ADMS is expected to outperform 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 Adamas Pharmaceuticals, Inc. (NASDAQ:ADMS) is undervalued.