Recent insider trends for RSP Permian, Inc. (NYSE:RSPP) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how RSPP might perform in the future.
Institutions own 89.71% of RSP Permian, Inc. (RSPP)’s shares. The total value of these holdings, in millions, is $4,869. Among active positions in the latest quarter, 163 holders increased their positions by a total of 24.97 million shares, 114 holders decreased the positions by a total of 18.85 million shares, and 27 holders held their positions. This works out to a net increase in ownership of 6.13 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 56 holders initiated new positions by a total of 9 million shares and 33 holders exited their positions by a total of 8.55 million shares. This nets out to an increase of 446632 shares and is a bullish sign for RSPP.
In the last three months, insiders executed a total of 30 trades. 6 of these were buys and 24 were sells. Insider ownership decreased by a total of 85696 shares, which suggests that RSPP’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 23 buys and 62 sells, and ownership decreased by a net of 17.65 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. RSP Permian, Inc. (NYSE:RSPP)’s short interest is 5.41 million shares, or 3.98% of the float. This represents a decrease of -11% 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.
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 RSPP. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that RSPP is a Weak sell, which implies that RSPP 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 RSP Permian, Inc. (NYSE:RSPP) is overvalued.