Recent insider trends for Teva Pharmaceutical Industries Limited (NYSE:TEVA) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on TEVA is anything to go by, investors should pay attention.
Institutions own 53.63% of Teva Pharmaceutical Industries Limited (TEVA)’s shares. The total value of these holdings, in millions, is $8,199. Among active positions in the latest quarter, 240 holders increased their positions by a total of 92.17 million shares, 396 holders decreased the positions by a total of 146.48 million shares, and 78 holders held their positions. This works out to a net decrease in ownership of 54.31 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 66 holders initiated new positions by a total of 26.98 million shares and 169 holders exited their positions by a total of 20.76 million shares. This nets out to an increase of 6.22 million shares and is a bullish sign for TEVA.
Insider ownership increased by a total of 0 shares, which suggests that TEVA’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Teva Pharmaceutical Industries Limited (NYSE:TEVA)’s short interest is 92.8 million shares, or % of the float. This represents an increase of 37% 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 TEVA is a Weak sell, which implies that TEVA 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 Teva Pharmaceutical Industries Limited (NYSE:TEVA) is overvalued.