Recent insider trends for Altaba Inc. (NASDAQ:AABA) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. AABA’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 82.21% of Altaba Inc. (AABA)’s shares. The total value of these holdings, in millions, is $48,920. Among active positions in the latest quarter, 221 holders increased their positions by a total of 104.84 million shares, 236 holders decreased the positions by a total of 102.03 million shares, and 107 holders held their positions. This works out to a net increase in ownership of 2.81 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 80 holders initiated new positions by a total of 15.79 million shares and 70 holders exited their positions by a total of 14.19 million shares. This nets out to an increase of 1.59 million shares and is a bullish sign for AABA.
In the last three months, insiders executed a total of 2 trades.2 were sells. Insider ownership decreased by a total of 10860 shares, which suggests that AABA’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 2 sells, and ownership decreased by a net of 10860 shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Altaba Inc. (NASDAQ:AABA)’s short interest is 15.87 million shares, or % of the float. This represents a decrease of -16% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for AABA. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that AABA is a Weak buy, which implies that AABA is expected to outperform 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 Altaba Inc. (NASDAQ:AABA) is undervalued.