Finance

Are Cisco Systems, Inc. (CSCO)’s Recent Ownership and Insider Trends a Sign of Things to Come?

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

Institutions own 76.74% of Cisco Systems, Inc. (CSCO)’s shares. The total value of these holdings, in millions, is $141,553. Among active positions in the latest quarter, 873 holders increased their positions by a total of 154.49 million shares, 922 holders decreased the positions by a total of 147.02 million shares, and 183 holders held their positions. This works out to a net increase in ownership of 7.47 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 74 holders initiated new positions by a total of 18.21 million shares and 86 holders exited their positions by a total of 13.82 million shares. This nets out to an increase of 4.38 million shares and is a bullish sign for CSCO.

In the last three months, insiders executed a total of 42 trades. 18 of these were buys and 24 were sells. Insider ownership increased by a total of 201225 shares, which suggests that CSCO’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 33 buys and 46 sells, and ownership decreased by a net of 781710 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. Cisco Systems, Inc. (NASDAQ:CSCO)’s short interest is 45.46 million shares, or % of the float. This represents a decrease of -8% 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.

Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CSCO is a Strong buy, which implies that CSCO 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 bullish. Technical indicators (also) suggest that Cisco Systems, Inc. (NASDAQ:CSCO) is undervalued.

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