Recent insider trends for Nordic American Tankers Limited (NYSE:NAT) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on NAT is anything to go by, investors should pay attention.
Institutions own 28.84% of Nordic American Tankers Limited (NAT)’s shares. The total value of these holdings, in millions, is $88. Among active positions in the latest quarter, 85 holders increased their positions by a total of 20.44 million shares, 61 holders decreased the positions by a total of 4.4 million shares, and 21 holders held their positions. This works out to a net increase in ownership of 16.04 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 44 holders initiated new positions by a total of 10.81 million shares and 22 holders exited their positions by a total of 1.01 million shares. This nets out to an increase of 9.8 million shares and is a bullish sign for NAT.
Insider ownership increased by a total of 0 shares, which suggests that NAT’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: and ownership increased by a net of 0 shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Nordic American Tankers Limited (NYSE:NAT)’s short interest is 5.49 million shares, or 5.50% of the float. This represents an increase of 5% 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 NAT is a Strong sell, which implies that NAT 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 Nordic American Tankers Limited (NYSE:NAT) is overvalued.