Recent insider trends for Gilead Sciences, Inc. (NASDAQ:GILD) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on GILD is anything to go by, investors should pay attention.
Institutions own 77.48% of Gilead Sciences, Inc. (GILD)’s shares. The total value of these holdings, in millions, is $74,175. Among active positions in the latest quarter, 721 holders increased their positions by a total of 96.31 million shares, 751 holders decreased the positions by a total of 68.56 million shares, and 169 holders held their positions. This works out to a net increase in ownership of 27.75 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 118 holders initiated new positions by a total of 12.3 million shares and 122 holders exited their positions by a total of 10.42 million shares. This nets out to an increase of 1.88 million shares and is a bullish sign for GILD.
In the last three months, insiders executed a total of 17 trades. 4 of these were buys and 13 were sells. Insider ownership decreased by a total of 554316 shares, which suggests that GILD’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 24 buys and 48 sells, and ownership decreased by a net of 1.58 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. Gilead Sciences, Inc. (NASDAQ:GILD)’s short interest is 19.99 million shares, or 1.54% 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 GILD is a Weak sell, which implies that GILD 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 bearish. Technical indicators (also) suggest that Gilead Sciences, Inc. (NASDAQ:GILD) is overvalued.