Recent insider trends for Sanchez Energy Corporation (NYSE:SN) 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 SN, the data has some interesting implications for where the stock might be headed.
Institutions own 69.62% of Sanchez Energy Corporation (SN)’s shares. The total value of these holdings, in millions, is $286. Among active positions in the latest quarter, 72 holders increased their positions by a total of 11.08 million shares, 81 holders decreased the positions by a total of 12.98 million shares, and 31 holders held their positions. This works out to a net decrease in ownership of 1.9 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 24 holders initiated new positions by a total of 2.65 million shares and 39 holders exited their positions by a total of 7.81 million shares. This nets out to a decrease of 5.15 million shares and is another bearish sign for SN.
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 445168 shares, which suggests that SN’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 24 sells, and ownership increased by a net of 1.94 million shares.
Short interest is another tool that analysts use to gauge investor sentiment. It represents the number of a stock’s shares that are being shorted by investors. Sanchez Energy Corporation (NYSE:SN)’s short interest is 23.94 million shares, or % of the float. This represents an increase of 15% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for SN. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SN is a sell, which implies that SN is expected to underperform 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 Sanchez Energy Corporation (NYSE:SN) is overvalued.