Recent insider trends for Century Aluminum Company (NASDAQ:CENX) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of CENX, the data has a lot to say about how the stock might perform going forward.
Institutions own 63.42% of Century Aluminum Company (CENX)’s shares. The total value of these holdings, in millions, is $1,205. Among active positions in the latest quarter, 68 holders increased their positions by a total of 8.46 million shares, 92 holders decreased the positions by a total of 13.54 million shares, and 27 holders held their positions. This works out to a net decrease in ownership of 5.07 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 27 holders initiated new positions by a total of 3.15 million shares and 35 holders exited their positions by a total of 4.57 million shares. This nets out to a decrease of 1.41 million shares and is another bearish sign for CENX.
In the last three months, insiders executed a total of 11 trades. 6 of these were buys and 5 were sells. Insider ownership increased by a total of 147863 shares, which suggests that CENX’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 12 buys and 10 sells, and ownership decreased by a net of 27.34 million 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. Century Aluminum Company (NASDAQ:CENX)’s short interest is 7.57 million shares, or 17.06% of the float. This represents a decrease of -15% 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.
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 CENX is a buy, which implies that CENX 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 Century Aluminum Company (NASDAQ:CENX) is undervalued.