Recent insider trends for Laredo Petroleum, Inc. (NYSE:LPI) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of LPI, the data has a lot to say about how the stock might perform going forward.
Institutions own 106.30% of Laredo Petroleum, Inc. (LPI)’s shares. The total value of these holdings, in millions, is $3,240. Among active positions in the latest quarter, 86 holders increased their positions by a total of 33.82 million shares, 95 holders decreased the positions by a total of 25.02 million shares, and 25 holders held their positions. This works out to a net increase in ownership of 8.81 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 20 holders initiated new positions by a total of 2.43 million shares and 38 holders exited their positions by a total of 5.84 million shares. This nets out to a decrease of 3.41 million shares and is another bearish sign for LPI.
In the last three months, insiders executed a total of 7 trades. 7 of these were buys and 0 were sells. Insider ownership increased by a total of 13194 shares, which suggests that LPI’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 36 buys and 17 sells, and ownership decreased by a net of 29.95 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. Laredo Petroleum, Inc. (NYSE:LPI)’s short interest is 21.37 million shares, or % of the float. This represents an increase of 9% 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 LPI is a buy, which implies that LPI 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 Laredo Petroleum, Inc. (NYSE:LPI) is undervalued.