Recent insider trends for Energy Transfer Partners, L.P. (NYSE:ETP) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on ETP is anything to go by, investors should pay attention.
Institutions own 59.82% of Energy Transfer Partners, L.P. (ETP)’s shares. The total value of these holdings, in millions, is $11,433. Among active positions in the latest quarter, 239 holders increased their positions by a total of 55.58 million shares, 251 holders decreased the positions by a total of 74.37 million shares, and 102 holders held their positions. This works out to a net decrease in ownership of 18.79 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 63 holders initiated new positions by a total of 4.91 million shares and 82 holders exited their positions by a total of 9.74 million shares. This nets out to a decrease of 4.83 million shares and is another bearish sign for ETP.
Insider ownership increased by a total of 0 shares, which suggests that ETP’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 15 buys, and ownership increased by a net of 3.78 million shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Energy Transfer Partners, L.P. (NYSE:ETP)’s short interest is 25.44 million shares, or % of the float. This represents an increase of 0% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ETP is a Strong sell, which implies that ETP is expected to underperform 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 Energy Transfer Partners, L.P. (NYSE:ETP) is overvalued.