Recent insider trends for CSX Corporation (NASDAQ:CSX) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on CSX is anything to go by, investors should pay attention.
Institutions own 72.93% of CSX Corporation (CSX)’s shares. The total value of these holdings, in millions, is $34,685. Among active positions in the latest quarter, 400 holders increased their positions by a total of 85.91 million shares, 472 holders decreased the positions by a total of 65.15 million shares, and 192 holders held their positions. This works out to a net increase in ownership of 20.75 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 99 holders initiated new positions by a total of 2.87 million shares and 71 holders exited their positions by a total of 8.68 million shares. This nets out to a decrease of 5.81 million shares and is another bearish sign for CSX.
In the last three months, insiders executed a total of 1 trades. 1 of these were buys and 0 were sells. Insider ownership increased by a total of 1.36 million shares, which suggests that CSX’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 56 buys and 22 sells, and ownership decreased by a net of 152054 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. CSX Corporation (NASDAQ:CSX)’s short interest is 22.88 million shares, or % of the float. This represents an increase of 4% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CSX is a buy, which implies that CSX 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 CSX Corporation (NASDAQ:CSX) is undervalued.