Recent insider trends for Energen Corporation (NYSE:EGN) 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 EGN, the data has some interesting implications for where the stock might be headed.
Institutions own 94.58% of Energen Corporation (EGN)’s shares. The total value of these holdings, in millions, is $4,638. Among active positions in the latest quarter, 158 holders increased their positions by a total of 10.17 million shares, 133 holders decreased the positions by a total of 13.45 million shares, and 55 holders held their positions. This works out to a net decrease in ownership of 3.29 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 55 holders initiated new positions by a total of 1.77 million shares and 35 holders exited their positions by a total of 1.57 million shares. This nets out to an increase of 206232 shares and is a bullish sign for EGN.
In the last three months, insiders executed a total of 36 trades. 28 of these were buys and 8 were sells. Insider ownership increased by a total of 105072 shares, which suggests that EGN’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 53 buys and 17 sells, and ownership increased by a net of 71094 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Energen Corporation (NYSE:EGN)’s short interest is 3.64 million shares, or 4.11% of the float. This represents an increase of 57% 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 EGN. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that EGN is a sell, which implies that EGN 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 Energen Corporation (NYSE:EGN) is overvalued.