Finance

Analyzing the Insider Data for Babcock & Wilcox Enterprises, Inc. (BW)

Recent insider trends for Babcock & Wilcox Enterprises, Inc. (NYSE:BW) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of BW, the data has a lot to say about how the stock might perform going forward.

Institutions own 95.60% of Babcock & Wilcox Enterprises, Inc. (BW)’s shares. The total value of these holdings, in millions, is $185. Among active positions in the latest quarter, 67 holders increased their positions by a total of 7.62 million shares, 70 holders decreased the positions by a total of 6.29 million shares, and 24 holders held their positions. This works out to a net increase in ownership of 1.32 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 19 holders initiated new positions by a total of 2.47 million shares and 31 holders exited their positions by a total of 2.02 million shares. This nets out to an increase of 453630 shares and is a bullish sign for BW.

In the last three months, insiders executed a total of 3 trades. 2 of these were buys and 1 were sells. Insider ownership increased by a total of 1.69 million shares, which suggests that BW’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 5 buys and 30 sells, and ownership increased by a net of 1.69 million 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. Babcock & Wilcox Enterprises, Inc. (NYSE:BW)’s short interest is 9.28 million shares, or 19.22% of the float. This represents an increase of 9% 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 BW is a Weak buy, which implies that BW is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Babcock & Wilcox Enterprises, Inc. (NYSE:BW) is undervalued.

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