Recent insider trends for National Oilwell Varco, Inc. (NYSE:NOV) 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 NOV might perform in the future.
Institutions own 91.28% of National Oilwell Varco, Inc. (NOV)’s shares. The total value of these holdings, in millions, is $11,676. Among active positions in the latest quarter, 215 holders increased their positions by a total of 17.04 million shares, 331 holders decreased the positions by a total of 19.3 million shares, and 74 holders held their positions. This works out to a net decrease in ownership of 2.26 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 59 holders initiated new positions by a total of 1.59 million shares and 62 holders exited their positions by a total of 3.62 million shares. This nets out to a decrease of 2.03 million shares and is another bearish sign for NOV.
In the last three months, insiders executed a total of 1 trades. 1 of these were buys. Insider ownership increased by a total of 749 shares, which suggests that NOV’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 13 sells, and ownership increased by a net of 101557 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. National Oilwell Varco, Inc. (NYSE:NOV)’s short interest is 28.84 million shares, or 7.61% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NOV is a Weak buy, which implies that NOV is expected to outperform 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 National Oilwell Varco, Inc. (NYSE:NOV) is undervalued.