Recent insider trends for Devon Energy Corporation (NYSE:DVN) 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 DVN, the data has some interesting implications for where the stock might be headed.
Institutions own 79.63% of Devon Energy Corporation (DVN)’s shares. The total value of these holdings, in millions, is $14,498. Among active positions in the latest quarter, 326 holders increased their positions by a total of 46.56 million shares, 379 holders decreased the positions by a total of 35.31 million shares, and 97 holders held their positions. This works out to a net increase in ownership of 11.25 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 83 holders initiated new positions by a total of 14.29 million shares and 74 holders exited their positions by a total of 4.54 million shares. This nets out to an increase of 9.75 million shares and is a bullish sign for DVN.
In the last three months, insiders executed a total of 10 trades. 7 of these were buys and 3 were sells. Insider ownership increased by a total of 290288 shares, which suggests that DVN’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 15 buys and 14 sells, and ownership increased by a net of 294762 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. Devon Energy Corporation (NYSE:DVN)’s short interest is 13.4 million shares, or 2.56% of the float. This represents an increase of 4% 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 DVN is a sell, which implies that DVN 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 Devon Energy Corporation (NYSE:DVN) is overvalued.