Finance

What the Insider Data Suggests About Apple Inc. (AAPL)

Recent insider trends for Apple Inc. (NASDAQ:AAPL) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how AAPL might perform in the future.

Institutions own 61.23% of Apple Inc. (AAPL)’s shares. The total value of these holdings, in millions, is $533,343. Among active positions in the latest quarter, 971 holders increased their positions by a total of 75.33 million shares, 1,411 holders decreased the positions by a total of 126.19 million shares, and 212 holders held their positions. This works out to a net decrease in ownership of 50.86 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 85 holders initiated new positions by a total of 19.4 million shares and 62 holders exited their positions by a total of 4.98 million shares. This nets out to an increase of 14.42 million shares and is a bullish sign for AAPL.

In the last three months, insiders executed a total of 22 trades. 2 of these were buys and 20 were sells. Insider ownership decreased by a total of 780682 shares, which suggests that AAPL’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 4 buys and 102 sells, and ownership decreased by a net of 3.17 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. Apple Inc. (NASDAQ:AAPL)’s short interest is 42.83 million shares, or % of the float. This represents an increase of 28% 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.

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 AAPL. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that AAPL is a Weak buy, which implies that AAPL 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 Apple Inc. (NASDAQ:AAPL) is undervalued.

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