Recent insider trends for Southwestern Energy Company (NYSE:SWN) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of SWN, the data has a lot to say about how the stock might perform going forward.
Institutions own 89.89% of Southwestern Energy Company (SWN)’s shares. The total value of these holdings, in millions, is $2,805. Among active positions in the latest quarter, 164 holders increased their positions by a total of 48.85 million shares, 210 holders decreased the positions by a total of 96.3 million shares, and 60 holders held their positions. This works out to a net decrease in ownership of 47.46 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 39 holders initiated new positions by a total of 19 million shares and 76 holders exited their positions by a total of 26.54 million shares. This nets out to a decrease of 7.54 million shares and is another bearish sign for SWN.
In the last three months, insiders executed a total of 11 trades. 4 of these were buys and 7 were sells. Insider ownership decreased by a total of 2104 shares, which suggests that SWN’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 61 buys and 22 sells, and ownership increased by a net of 897749 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Southwestern Energy Company (NYSE:SWN)’s short interest is 41.7 million shares, or 8.53% of the float. This represents a decrease of -2% 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.
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 SWN is a Weak sell, which implies that SWN 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 bearish. Technical indicators (also) suggest that Southwestern Energy Company (NYSE:SWN) is overvalued.