Recent insider trends for Activision Blizzard, Inc. (NASDAQ:ATVI) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on ATVI is anything to go by, investors should pay attention.
Institutions own 90.15% of Activision Blizzard, Inc. (ATVI)’s shares. The total value of these holdings, in millions, is $43,056. Among active positions in the latest quarter, 410 holders increased their positions by a total of 54.46 million shares, 309 holders decreased the positions by a total of 48.84 million shares, and 95 holders held their positions. This works out to a net increase in ownership of 5.62 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 98 holders initiated new positions by a total of 14.57 million shares and 51 holders exited their positions by a total of 6.61 million shares. This nets out to an increase of 7.96 million shares and is a bullish sign for ATVI.
In the last three months, insiders executed a total of 14 trades. 9 of these were buys and 5 were sells. Insider ownership increased by a total of 25342 shares, which suggests that ATVI’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 26 buys and 38 sells, and ownership decreased by a net of 13.49 million 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. Activision Blizzard, Inc. (NASDAQ:ATVI)’s short interest is 14.57 million shares, or 2.10% of the float. This represents a decrease of -7% 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.
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 ATVI is a buy, which implies that ATVI 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 bullish. Technical indicators (also) suggest that Activision Blizzard, Inc. (NASDAQ:ATVI) is undervalued.