Finance

Dissecting the Insider Trading Patterns of Vale S.A. (VALE)

Recent insider trends for Vale S.A. (NYSE:VALE) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of VALE, the data has a lot to say about how the stock might perform going forward.

Institutions own 21.43% of Vale S.A. (VALE)’s shares. The total value of these holdings, in millions, is $12,537. Among active positions in the latest quarter, 156 holders increased their positions by a total of 207.21 million shares, 157 holders decreased the positions by a total of 91.74 million shares, and 55 holders held their positions. This works out to a net increase in ownership of 115.47 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 51 holders initiated new positions by a total of 111.29 million shares and 42 holders exited their positions by a total of 12.29 million shares. This nets out to an increase of 99 million shares and is a bullish sign for VALE.

Insider ownership increased by a total of 0 shares, which suggests that VALE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.



Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Vale S.A. (NYSE:VALE)’s short interest is 93.34 million shares, or 2.97% of the float. This represents a decrease of -11% 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 VALE is a Strong buy, which implies that VALE is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Vale S.A. (NYSE:VALE) is undervalued.

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