Recent insider trends for Netlist, Inc. (NASDAQ:NLST) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. NLST’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 22.54% of Netlist, Inc. (NLST)’s shares. The total value of these holdings, in millions, is $4. Among active positions in the latest quarter, 13 holders increased their positions by a total of 3.13 million shares, 6 holders decreased the positions by a total of 894503 shares, and 13 holders held their positions. This works out to a net increase in ownership of 2.24 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 5 holders initiated new positions by a total of 1.36 million shares and 1 holders exited their positions by a total of 83 shares. This nets out to an increase of 1.36 million shares and is a bullish sign for NLST.
Insider ownership increased by a total of 0 shares, which suggests that NLST’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 8 sells, and ownership decreased by a net of 200200 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. Netlist, Inc. (NASDAQ:NLST)’s short interest is 3.79 million shares, or 7.52% of the float. This represents an increase of 13% 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 NLST is a sell, which implies that NLST 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 Netlist, Inc. (NASDAQ:NLST) is overvalued.