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Dissecting the Insider Trading Patterns of CEMEX, S.A.B. de C.V. (CX)

Recent insider trends for CEMEX, S.A.B. de C.V. (NYSE:CX) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on CX is anything to go by, investors should pay attention.

Institutions own 43.74% of CEMEX, S.A.B. de C.V. (CX)’s shares. The total value of these holdings, in millions, is $5,160. Among active positions in the latest quarter, 127 holders increased their positions by a total of 119.8 million shares, 148 holders decreased the positions by a total of 54.88 million shares, and 48 holders held their positions. This works out to a net increase in ownership of 64.92 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 39 holders initiated new positions by a total of 22.42 million shares and 36 holders exited their positions by a total of 14.74 million shares. This nets out to an increase of 7.68 million shares and is a bullish sign for CX.

Insider ownership increased by a total of 0 shares, which suggests that CX’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story:  ownership increased by a net of 0 shares.



Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. CEMEX, S.A.B. de C.V. (NYSE:CX)’s short interest is 12.73 million shares, or % of the float. This represents a decrease of -35% 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 CX is a Strong sell, which implies that CX is expected to underperform 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 CEMEX, S.A.B. de C.V. (NYSE:CX) is overvalued.

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