Recent insider trends for Applied Materials, Inc. (NASDAQ:AMAT) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of AMAT, the data has a lot to say about how the stock might perform going forward.
Institutions own 81.06% of Applied Materials, Inc. (AMAT)’s shares. The total value of these holdings, in millions, is $43,294. Among active positions in the latest quarter, 474 holders increased their positions by a total of 65.85 million shares, 452 holders decreased the positions by a total of 68.61 million shares, and 137 holders held their positions. This works out to a net decrease in ownership of 2.76 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 132 holders initiated new positions by a total of 21.67 million shares and 45 holders exited their positions by a total of 2.54 million shares. This nets out to an increase of 19.13 million shares and is a bullish sign for AMAT.
In the last three months, insiders executed a total of 6 trades. 2 of these were buys and 4 were sells. Insider ownership increased by a total of 17490 shares, which suggests that AMAT’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 14 buys and 22 sells, and ownership decreased by a net of 542332 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. Applied Materials, Inc. (NASDAQ:AMAT)’s short interest is 10.95 million shares, or % of the float. This represents an increase of 2% 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 AMAT is a Weak sell, which implies that AMAT is expected to underperform 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 Applied Materials, Inc. (NASDAQ:AMAT) is overvalued.