Earnings

Analyzing the Insider Data for The Williams Companies, Inc. (WMB)

Recent insider trends for The Williams Companies, Inc. (NYSE:WMB) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. WMB’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 86.77% of The Williams Companies, Inc. (WMB)’s shares. The total value of these holdings, in millions, is $21,819. Among active positions in the latest quarter, 330 holders increased their positions by a total of 83.34 million shares, 311 holders decreased the positions by a total of 67 million shares, and 124 holders held their positions. This works out to a net increase in ownership of 16.34 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 7.32 million shares and 56 holders exited their positions by a total of 16.68 million shares. This nets out to a decrease of 9.36 million shares and is another bearish sign for WMB.

In the last three months, insiders executed a total of 5 trades. 3 of these were buys and 2 were sells. Insider ownership increased by a total of 20359 shares, which suggests that WMB’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 9 buys and 17 sells, and ownership decreased by a net of 164254 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. The Williams Companies, Inc. (NYSE:WMB)’s short interest is 14.18 million shares, or 1.72% of the float. This represents an increase of 1% 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 WMB. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that WMB is a Weak buy, which implies that WMB 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 bullish. Technical indicators (also) suggest that The Williams Companies, Inc. (NYSE:WMB) is undervalued.

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