Recent insider trends for Continental Resources, Inc. (NYSE:CLR) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how CLR might perform in the future.
Institutions own 22.82% of Continental Resources, Inc. (CLR)’s shares. The total value of these holdings, in millions, is $3,900. Among active positions in the latest quarter, 140 holders increased their positions by a total of 13.58 million shares, 177 holders decreased the positions by a total of 16.76 million shares, and 64 holders held their positions. This works out to a net decrease in ownership of 3.17 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 44 holders initiated new positions by a total of 5.92 million shares and 53 holders exited their positions by a total of 4.77 million shares. This nets out to an increase of 1.15 million shares and is a bullish sign for CLR.
In the last three months, insiders executed a total of 3 trades. 3 were sells. Insider ownership decreased by a total of 23791 shares, which suggests that CLR’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 20 buys and 22 sells, and ownership increased by a net of 370605 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. Continental Resources, Inc. (NYSE:CLR)’s short interest is 16.7 million shares, or 20.17% of the float. This represents a decrease of -0% 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 CLR is a Strong buy, which implies that CLR 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 Continental Resources, Inc. (NYSE:CLR) is undervalued.