Recent insider trends for Schlumberger Limited (NYSE:SLB) 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 SLB, the data has some interesting implications for where the stock might be headed.
Institutions own 80.59% of Schlumberger Limited (SLB)’s shares. The total value of these holdings, in millions, is $72,712. Among active positions in the latest quarter, 632 holders increased their positions by a total of 75.51 million shares, 926 holders decreased the positions by a total of 62.61 million shares, and 150 holders held their positions. This works out to a net increase in ownership of 12.9 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 136 holders initiated new positions by a total of 15.5 million shares and 112 holders exited their positions by a total of 9.96 million shares. This nets out to an increase of 5.53 million shares and is a bullish sign for SLB.
In the last three months, insiders executed a total of 3 trades. 3 were sells. Insider ownership decreased by a total of 104841 shares, which suggests that SLB’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 14 buys and 8 sells, and ownership decreased by a net of 121416 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. Schlumberger Limited (NYSE:SLB)’s short interest is 23.92 million shares, or 1.73% of the float. This represents a decrease of -13% 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 SLB is a sell, which implies that SLB 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 bearish. Technical indicators (also) suggest that Schlumberger Limited (NYSE:SLB) is overvalued.