Recent insider trends for Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) 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 PBR, the data has some interesting implications for where the stock might be headed.
Institutions own 10.00% of Petroleo Brasileiro S.A. – Petrobras (PBR)’s shares. The total value of these holdings, in millions, is $3,665. Among active positions in the latest quarter, 125 holders increased their positions by a total of 44.16 million shares, 129 holders decreased the positions by a total of 50.46 million shares, and 56 holders held their positions. This works out to a net decrease in ownership of 6.29 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 32 holders initiated new positions by a total of 8.38 million shares and 41 holders exited their positions by a total of 10.66 million shares. This nets out to a decrease of 2.29 million shares and is another bearish sign for PBR.
Insider ownership increased by a total of 0 shares, which suggests that PBR’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.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR)’s short interest is 49.35 million shares, or 1.38% of the float. This represents an increase of 48% 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 PBR is a sell, which implies that PBR 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 Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) is overvalued.