Finance

Analyzing the Insider Data for QUALCOMM Incorporated (QCOM)

Recent insider trends for QUALCOMM Incorporated (NASDAQ:QCOM) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. QCOM’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 78.02% of QUALCOMM Incorporated (QCOM)’s shares. The total value of these holdings, in millions, is $74,399. Among active positions in the latest quarter, 607 holders increased their positions by a total of 74.86 million shares, 734 holders decreased the positions by a total of 78.15 million shares, and 150 holders held their positions. This works out to a net decrease in ownership of 3.29 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 78 holders initiated new positions by a total of 2.98 million shares and 112 holders exited their positions by a total of 10.13 million shares. This nets out to a decrease of 7.15 million shares and is another bearish sign for QCOM.

In the last three months, insiders executed a total of 12 trades. 2 of these were buys and 10 were sells. Insider ownership decreased by a total of 49525 shares, which suggests that QCOM’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 20 buys and 46 sells, and ownership decreased by a net of 429819 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. QUALCOMM Incorporated (NASDAQ:QCOM)’s short interest is 26.62 million shares, or 1.80% of the float. This represents an increase of 22% 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 QCOM is a Weak buy, which implies that QCOM is expected to outperform 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 QUALCOMM Incorporated (NASDAQ:QCOM) is undervalued.

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