Recent insider trends for Freeport-McMoRan Inc. (NYSE:FCX) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of FCX, the data has some interesting implications for where the stock might be headed.
Institutions own 69.85% of Freeport-McMoRan Inc. (FCX)’s shares. The total value of these holdings, in millions, is $14,570. Among active positions in the latest quarter, 319 holders increased their positions by a total of 87.28 million shares, 318 holders decreased the positions by a total of 85.32 million shares, and 117 holders held their positions. This works out to a net increase in ownership of 1.96 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 73 holders initiated new positions by a total of 20.56 million shares and 72 holders exited their positions by a total of 13.12 million shares. This nets out to an increase of 7.44 million shares and is a bullish sign for FCX.
In the last three months, insiders executed a total of 6 trades. 4 of these were buys and 2 were sells. Insider ownership increased by a total of 39476 shares, which suggests that FCX’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 25 buys and 10 sells, and ownership increased by a net of 183173 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. Freeport-McMoRan Inc. (NYSE:FCX)’s short interest is 31.4 million shares, or 2.35% of the float. This represents a decrease of -7% 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 FCX is a Weak buy, which implies that FCX 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 Freeport-McMoRan Inc. (NYSE:FCX) is undervalued.