Recent insider trends for CenturyLink, Inc. (NYSE:CTL) 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 CTL, the data has some interesting implications for where the stock might be headed.
Institutions own 83.96% of CenturyLink, Inc. (CTL)’s shares. The total value of these holdings, in millions, is $12,916. Among active positions in the latest quarter, 349 holders increased their positions by a total of 84.5 million shares, 388 holders decreased the positions by a total of 77.92 million shares, and 129 holders held their positions. This works out to a net increase in ownership of 6.58 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 61 holders initiated new positions by a total of 17.91 million shares and 95 holders exited their positions by a total of 24.78 million shares. This nets out to a decrease of 6.87 million shares and is another bearish sign for CTL.
In the last three months, insiders executed a total of 13 trades. 9 of these were buys and 4 were sells. Insider ownership increased by a total of 3.54 million shares, which suggests that CTL’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 33 buys and 22 sells, and ownership increased by a net of 4.96 million 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. CenturyLink, Inc. (NYSE:CTL)’s short interest is 51.36 million shares, or 9.45% of the float. This represents a decrease of -63% 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 CTL. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CTL is a Strong sell, which implies that CTL 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 CenturyLink, Inc. (NYSE:CTL) is overvalued.