Finance

Are Southwestern Energy Company (SWN)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for Southwestern Energy Company (NYSE:SWN) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. SWN’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 97.78% of Southwestern Energy Company (SWN)’s shares. The total value of these holdings, in millions, is $2,726. Among active positions in the latest quarter, 208 holders increased their positions by a total of 97.03 million shares, 235 holders decreased the positions by a total of 149.06 million shares, and 43 holders held their positions. This works out to a net decrease in ownership of 52.03 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 64 holders initiated new positions by a total of 28.88 million shares and 94 holders exited their positions by a total of 30.5 million shares. This nets out to a decrease of 1.62 million shares and is another bearish sign for SWN.

In the last three months, insiders executed a total of 3 trades. 2 of these were buys and 1 were sells. Insider ownership increased by a total of 100199 shares, which suggests that SWN’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 54 buys and 27 sells, and ownership increased by a net of 884019 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. Southwestern Energy Company (NYSE:SWN)’s short interest is 43.29 million shares, or 8.85% of the float. This represents an increase of 6% 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.

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 SWN is a sell, which implies that SWN is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Southwestern Energy Company (NYSE:SWN) is overvalued.

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