Finance

Are Cenovus Energy Inc. (CVE)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for Cenovus Energy Inc. (NYSE:CVE) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of CVE, the data has a lot to say about how the stock might perform going forward.

Institutions own 73.01% of Cenovus Energy Inc. (CVE)’s shares. The total value of these holdings, in millions, is $6,684. Among active positions in the latest quarter, 113 holders increased their positions by a total of 291.81 million shares, 129 holders decreased the positions by a total of 65.08 million shares, and 59 holders held their positions. This works out to a net increase in ownership of 226.73 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 44 holders initiated new positions by a total of 238.49 million shares and 32 holders exited their positions by a total of 6.72 million shares. This nets out to an increase of 231.76 million shares and is a bullish sign for CVE.

Insider ownership increased by a total of 0 shares, which suggests that CVE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: ownership increased by a net of 0 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Cenovus Energy Inc. (NYSE:CVE)’s short interest is 22.57 million shares, or 2.22% of the float. This represents an increase of 12% 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.

In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for CVE. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CVE is a Strong sell, which implies that CVE 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 Cenovus Energy Inc. (NYSE:CVE) is overvalued.

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