Recent insider trends for Weatherford International plc (NYSE:WFT) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of WFT, the data has a lot to say about how the stock might perform going forward.
Institutions own 113.05% of Weatherford International plc (WFT)’s shares. The total value of these holdings, in millions, is $3,860. Among active positions in the latest quarter, 155 holders increased their positions by a total of 98.52 million shares, 161 holders decreased the positions by a total of 82.74 million shares, and 90 holders held their positions. This works out to a net increase in ownership of 15.78 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 38 holders initiated new positions by a total of 23.81 million shares and 45 holders exited their positions by a total of 20.5 million shares. This nets out to an increase of 3.31 million shares and is a bullish sign for WFT.
In the last three months, insiders executed a total of 29 trades. 11 of these were buys and 18 were sells. Insider ownership increased by a total of 900341 shares, which suggests that WFT’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 21 buys and 35 sells, and ownership increased by a net of 3.52 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Weatherford International plc (NYSE:WFT)’s short interest is 157.15 million shares, or 17.30% of the float. This represents an increase of 1% 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 WFT is a sell, which implies that WFT 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 Weatherford International plc (NYSE:WFT) is overvalued.