Recent insider trends for Energy Transfer Equity, L.P. (NYSE:ETE) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on ETE is anything to go by, investors should pay attention.
Institutions own 48.55% of Energy Transfer Equity, L.P. (ETE)’s shares. The total value of these holdings, in millions, is $8,812. Among active positions in the latest quarter, 127 holders increased their positions by a total of 54.76 million shares, 151 holders decreased the positions by a total of 43.5 million shares, and 111 holders held their positions. This works out to a net increase in ownership of 11.26 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 34 holders initiated new positions by a total of 5.76 million shares and 32 holders exited their positions by a total of 11.73 million shares. This nets out to a decrease of 5.97 million shares and is another bearish sign for ETE.
Insider ownership increased by a total of 0 shares, which suggests that ETE’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 3 buys, and ownership increased by a net of 15648 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Energy Transfer Equity, L.P. (NYSE:ETE)’s short interest is 53.96 million shares, or 7.07% of the float. This represents a decrease of -2% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ETE is a sell, which implies that ETE 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 Energy Transfer Equity, L.P. (NYSE:ETE) is overvalued.