Recent insider trends for Boston Scientific Corporation (NYSE:BSX) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of BSX, the data has a lot to say about how the stock might perform going forward.
Institutions own 95.17% of Boston Scientific Corporation (BSX)’s shares. The total value of these holdings, in millions, is $32,593. Among active positions in the latest quarter, 239 holders increased their positions by a total of 51.95 million shares, 248 holders decreased the positions by a total of 44.32 million shares, and 107 holders held their positions. This works out to a net increase in ownership of 7.64 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 37 holders initiated new positions by a total of 14 million shares and 44 holders exited their positions by a total of 3.05 million shares. This nets out to an increase of 10.95 million shares and is a bullish sign for BSX.
In the last three months, insiders executed a total of 12 trades.12 were sells. Insider ownership decreased by a total of 433231 shares, which suggests that BSX’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 19 buys and 137 sells, and ownership decreased by a net of 1.04 million shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Boston Scientific Corporation (NYSE:BSX)’s short interest is 15.79 million shares, or 1.16% of the float. This represents an increase of 33% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that BSX is a Strong sell, which implies that BSX 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 Boston Scientific Corporation (NYSE:BSX) is overvalued.