Recent insider trends for Square, Inc. (NYSE:SQ) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on SQ is anything to go by, investors should pay attention.
Institutions own 78.36% of Square, Inc. (SQ)’s shares. The total value of these holdings, in millions, is $7,860. Among active positions in the latest quarter, 181 holders increased their positions by a total of 34.44 million shares, 118 holders decreased the positions by a total of 30.34 million shares, and 55 holders held their positions. This works out to a net increase in ownership of 4.09 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 65 holders initiated new positions by a total of 5.18 million shares and 31 holders exited their positions by a total of 4.35 million shares. This nets out to an increase of 833580 shares and is a bullish sign for SQ.
In the last three months, insiders executed a total of 51 trades. 16 of these were buys and 35 were sells. Insider ownership decreased by a total of 388937 shares, which suggests that SQ’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 90 buys and 107 sells, and ownership increased by a net of 3.35 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. Square, Inc. (NYSE:SQ)’s short interest is 36.83 million shares, or % of the float. This represents an increase of 6% 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 SQ is a Weak buy, which implies that SQ 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 Square, Inc. (NYSE:SQ) is undervalued.