Recent insider trends for Encana Corporation (NYSE:ECA) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how ECA might perform in the future.
Institutions own 70.06% of Encana Corporation (ECA)’s shares. The total value of these holdings, in millions, is $8,216. Among active positions in the latest quarter, 157 holders increased their positions by a total of 103.48 million shares, 150 holders decreased the positions by a total of 82.64 million shares, and 71 holders held their positions. This works out to a net increase in ownership of 20.84 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 46 holders initiated new positions by a total of 27.34 million shares and 38 holders exited their positions by a total of 10.84 million shares. This nets out to an increase of 16.5 million shares and is a bullish sign for ECA.
In the last three months, insiders executed a total of 2 trades.2 were sells. Insider ownership decreased by a total of 98314 shares, which suggests that ECA’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 8 buys and 5 sells, and ownership decreased by a net of 248543 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Encana Corporation (NYSE:ECA)’s short interest is 16.92 million shares, or 1.91% of the float. This represents a decrease of -10% 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.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for ECA. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ECA is a Weak sell, which implies that ECA 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 Encana Corporation (NYSE:ECA) is overvalued.