Recent insider trends for Southwestern Energy Company (NYSE:SWN) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how SWN might perform in the future.
Institutions own 97.39% of Southwestern Energy Company (SWN)’s shares. The total value of these holdings, in millions, is $3,329. Among active positions in the latest quarter, 200 holders increased their positions by a total of 88.22 million shares, 214 holders decreased the positions by a total of 140.83 million shares, and 51 holders held their positions. This works out to a net decrease in ownership of 52.61 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 60 holders initiated new positions by a total of 28.65 million shares and 77 holders exited their positions by a total of 26.56 million shares. This nets out to an increase of 2.09 million shares and is a bullish sign for SWN.
In the last three months, insiders executed a total of 2 trades. 1 of these were buys and 1 were sells. Insider ownership decreased by a total of 28006 shares, which suggests that SWN’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 54 buys and 27 sells, and ownership increased by a net of 884019 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. Southwestern Energy Company (NYSE:SWN)’s short interest is 42.5 million shares, or 8.69% of the float. This represents a decrease of -2% 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 SWN is a buy, which implies that SWN 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 Southwestern Energy Company (NYSE:SWN) is undervalued.