Finance

Analyzing the Insider Data for Centennial Resource Development, Inc. (CDEV)

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

Institutions own 94.05% of Centennial Resource Development, Inc. (CDEV)’s shares. The total value of these holdings, in millions, is $4,386. Among active positions in the latest quarter, 98 holders increased their positions by a total of 24.95 million shares, 49 holders decreased the positions by a total of 30.63 million shares, and 23 holders held their positions. This works out to a net decrease in ownership of 5.68 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 46 holders initiated new positions by a total of 11.31 million shares and 17 holders exited their positions by a total of 5.05 million shares. This nets out to an increase of 6.26 million shares and is a bullish sign for CDEV.

In the last three months, insiders executed a total of 5 trades. 4 of these were buys and 1 were sells. Insider ownership increased by a total of 30891 shares, which suggests that CDEV’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 14 buys and 8 sells, and ownership decreased by a net of 67.83 million 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. Centennial Resource Development, Inc. (NASDAQ:CDEV)’s short interest is 12.72 million shares, or 8.98% of the float. This represents an increase of 7% 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 CDEV is a sell, which implies that CDEV 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 Centennial Resource Development, Inc. (NASDAQ:CDEV) is overvalued.

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