Recent insider trends for Noble Corporation plc (NYSE:NE) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of NE, the data has some interesting implications for where the stock might be headed.
Institutions own 88.35% of Noble Corporation plc (NE)’s shares. The total value of these holdings, in millions, is $920. Among active positions in the latest quarter, 111 holders increased their positions by a total of 21.14 million shares, 145 holders decreased the positions by a total of 42.2 million shares, and 50 holders held their positions. This works out to a net decrease in ownership of 21.06 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 35 holders initiated new positions by a total of 7.26 million shares and 53 holders exited their positions by a total of 14.77 million shares. This nets out to a decrease of 7.51 million shares and is another bearish sign for NE.
In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 3201 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 18 sells, and ownership increased by a net of 756949 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Noble Corporation plc (NYSE:NE)’s short interest is 47.44 million shares, or 20.83% of the float. This represents an increase of 11% 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 NE is a Weak 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.