Finance

Should You Invest in The AES Corporation (AES)? A Look at the Insider Trends

Recent insider trends for The AES Corporation (NYSE:AES) 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 AES, the data has some interesting implications for where the stock might be headed.

Institutions own 93.48% of The AES Corporation (AES)’s shares. The total value of these holdings, in millions, is $6,889. Among active positions in the latest quarter, 235 holders increased their positions by a total of 53.43 million shares, 220 holders decreased the positions by a total of 51.5 million shares, and 70 holders held their positions. This works out to a net increase in ownership of 1.94 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 48 holders initiated new positions by a total of 9.85 million shares and 46 holders exited their positions by a total of 5.52 million shares. This nets out to an increase of 4.33 million shares and is a bullish sign for AES.

In the last three months, insiders executed a total of 4 trades. 4 of these were buys. Insider ownership increased by a total of 48332 shares, which suggests that AES’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 11 buys and 24 sells, and ownership increased by a net of 223617 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. The AES Corporation (NYSE:AES)’s short interest is 14.52 million shares, or 2.21% of the float. This represents an increase of 13% 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 AES is a Strong buy, which implies that AES is expected to outperform 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 The AES Corporation (NYSE:AES) is undervalued.

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