Recent insider trends for Huntsman Corporation (NYSE:HUN) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on HUN is anything to go by, investors should pay attention.
Institutions own 76.67% of Huntsman Corporation (HUN)’s shares. The total value of these holdings, in millions, is $5,039. Among active positions in the latest quarter, 174 holders increased their positions by a total of 55.97 million shares, 180 holders decreased the positions by a total of 46.78 million shares, and 35 holders held their positions. This works out to a net increase in ownership of 9.19 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 69 holders initiated new positions by a total of 32.18 million shares and 57 holders exited their positions by a total of 15.72 million shares. This nets out to an increase of 16.46 million shares and is a bullish sign for HUN.
In the last three months, insiders executed a total of 2 trades. 2 were sells. Insider ownership decreased by a total of 2231 shares, which suggests that HUN’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 14 buys and 64 sells, and ownership decreased by a net of 1.64 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. Huntsman Corporation (NYSE:HUN)’s short interest is 6.23 million shares, or 2.87% of the float. This represents a decrease of -0% 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 HUN is a Strong buy, which implies that HUN 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 bearish. Technical indicators (also) suggest that Huntsman Corporation (NYSE:HUN) is undervalued.