Recent insider trends for Denbury Resources Inc. (NYSE:DNR) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. DNR’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 81.96% of Denbury Resources Inc. (DNR)’s shares. The total value of these holdings, in millions, is $597. Among active positions in the latest quarter, 82 holders increased their positions by a total of 19.64 million shares, 88 holders decreased the positions by a total of 44.22 million shares, and 39 holders held their positions. This works out to a net decrease in ownership of 24.58 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 24 holders initiated new positions by a total of 6.64 million shares and 23 holders exited their positions by a total of 11.11 million shares. This nets out to a decrease of 4.46 million shares and is another bearish sign for DNR.
In the last three months, insiders executed a total of 2 trades.2 were sells. Insider ownership decreased by a total of 63610 shares, which suggests that DNR’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 17 buys and 17 sells, and ownership increased by a net of 2.03 million 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. Denbury Resources Inc. (NYSE:DNR)’s short interest is 60.11 million shares, or 15.66% of the float. This represents a decrease of -4% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that DNR is a buy, which implies that DNR is expected to outperform 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 Denbury Resources Inc. (NYSE:DNR) is undervalued.