Finance

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

Recent insider trends for Twitter, Inc. (NYSE:TWTR) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of TWTR, the data has a lot to say about how the stock might perform going forward.

Institutions own 51.19% of Twitter, Inc. (TWTR)’s shares. The total value of these holdings, in millions, is $7,898. Among active positions in the latest quarter, 244 holders increased their positions by a total of 42.11 million shares, 210 holders decreased the positions by a total of 26.41 million shares, and 93 holders held their positions. This works out to a net increase in ownership of 15.71 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 73 holders initiated new positions by a total of 19.53 million shares and 63 holders exited their positions by a total of 9.17 million shares. This nets out to an increase of 10.36 million shares and is a bullish sign for TWTR.

In the last three months, insiders executed a total of 41 trades. 1 of these were buys and 40 were sells. Insider ownership decreased by a total of 6.79 million shares, which suggests that TWTR’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 14 buys and 123 sells, and ownership decreased by a net of 9.43 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. Twitter, Inc. (NYSE:TWTR)’s short interest is 35.78 million shares, or % of the float. This represents a decrease of -12% 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.

In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for TWTR. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that TWTR is a buy, which implies that TWTR 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 Twitter, Inc. (NYSE:TWTR) is undervalued.

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