Recent insider trends for Noble Corporation plc (NYSE:NE) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. NE’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 97.11% of Noble Corporation plc (NE)’s shares. The total value of these holdings, in millions, is $1,043. Among active positions in the latest quarter, 124 holders increased their positions by a total of 55.03 million shares, 174 holders decreased the positions by a total of 57.77 million shares, and 52 holders held their positions. This works out to a net decrease in ownership of 2.73 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 32 holders initiated new positions by a total of 11.57 million shares and 80 holders exited their positions by a total of 36.25 million shares. This nets out to a decrease of 24.68 million shares and is another bearish sign for NE.
In the last three months, insiders executed a total of 2 trades. 2 of these were buys. Insider ownership increased by a total of 6060 shares, which suggests that NE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 27 buys and 19 sells, and ownership increased by a net of 755794 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. Noble Corporation plc (NYSE:NE)’s short interest is 43.01 million shares, or 18.88% of the float. This represents a decrease of -3% in the number of shares being shorted compared to the previous reading, and implies that investors felt less 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 NE is a buy, which implies that NE 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 Noble Corporation plc (NYSE:NE) is undervalued.