Recent insider trends for CEMEX, S.A.B. de C.V. (NYSE:CX) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on CX is anything to go by, investors should pay attention.
Institutions own 40.84% of CEMEX, S.A.B. de C.V. (CX)’s shares. The total value of these holdings, in millions, is $4,336. Among active positions in the latest quarter, 140 holders increased their positions by a total of 96.11 million shares, 130 holders decreased the positions by a total of 94.09 million shares, and 54 holders held their positions. This works out to a net increase in ownership of 2.02 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 40 holders initiated new positions by a total of 6.19 million shares and 39 holders exited their positions by a total of 47.6 million shares. This nets out to a decrease of 41.41 million shares and is another bearish sign for CX.
Insider ownership increased by a total of 0 shares, which suggests that CX’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. CEMEX, S.A.B. de C.V. (NYSE:CX)’s short interest is 14.91 million shares, or % of the float. This represents an increase of 17% 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 CX is a Strong sell, which implies that CX 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 CEMEX, S.A.B. de C.V. (NYSE:CX) is overvalued.