Finance

Are Investors Buying or Selling Forterra (FRTA), and What Should You Do?

Recent insider trends for Forterra, Inc. (NASDAQ:FRTA) 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 FRTA might perform in the future.

Institutions own 105.51% of Forterra, Inc. (FRTA)’s shares. The total value of these holdings, in millions, is $607. Among active positions in the latest quarter, 45 holders increased their positions by a total of 11.99 million shares, 42 holders decreased the positions by a total of 5.41 million shares, and 13 holders held their positions. This works out to a net increase in ownership of 6.58 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 25 holders initiated new positions by a total of 10.04 million shares and 20 holders exited their positions by a total of 3.28 million shares. This nets out to an increase of 6.76 million shares and is a bullish sign for FRTA.

In the last three months, insiders executed a total of 17 trades. 16 of these were buys and 1 were sells. Insider ownership increased by a total of 355757 shares, which suggests that FRTA’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 27 buys and 2 sells, and ownership increased by a net of 273291 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Forterra, Inc. (NASDAQ:FRTA)’s short interest is 6.41 million shares, or 34.00% of the float. This represents a decrease of -13% 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.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for FRTA. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that FRTA is a buy, which implies that FRTA 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 Forterra, Inc. (NASDAQ:FRTA) is undervalued.

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