Recent insider trends for Nabors Industries Ltd. (NYSE:NBR) 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 NBR, the data has some interesting implications for where the stock might be headed.
Institutions own 99.25% of Nabors Industries Ltd. (NBR)’s shares. The total value of these holdings, in millions, is $1,674. Among active positions in the latest quarter, 154 holders increased their positions by a total of 46.75 million shares, 180 holders decreased the positions by a total of 56.33 million shares, and 46 holders held their positions. This works out to a net decrease in ownership of 9.58 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 41 holders initiated new positions by a total of 12.59 million shares and 65 holders exited their positions by a total of 23.23 million shares. This nets out to a decrease of 10.64 million shares and is another bearish sign for NBR.
The data from the past twelve months tells a similar story: insiders executed 13 buys and 10 sells, and ownership increased by a net of 436149 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. Nabors Industries Ltd. (NYSE:NBR)’s short interest is 33.8 million shares, or 12.31% of the float. This represents an increase of 18% 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.
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 NBR is a sell, which implies that NBR 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 Nabors Industries Ltd. (NYSE:NBR) is overvalued.