Recent insider trends for Weatherford International plc (NYSE:WFT) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. WFT’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 109.86% of Weatherford International plc (WFT)’s shares. The total value of these holdings, in millions, is $4,274. Among active positions in the latest quarter, 168 holders increased their positions by a total of 122.39 million shares, 172 holders decreased the positions by a total of 163.2 million shares, and 93 holders held their positions. This works out to a net decrease in ownership of 40.81 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 44 holders initiated new positions by a total of 18.23 million shares and 58 holders exited their positions by a total of 51.21 million shares. This nets out to a decrease of 32.98 million shares and is another bearish sign for WFT.
In the last three months, insiders executed a total of 28 trades. 11 of these were buys and 17 were sells. Insider ownership increased by a total of 900875 shares, which suggests that WFT’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 21 buys and 35 sells, and ownership increased by a net of 3.52 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. Weatherford International plc (NYSE:WFT)’s short interest is 155.4 million shares, or 17.11% of the float. This represents an increase of 23% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that WFT is a Strong sell, which implies that WFT 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 Weatherford International plc (NYSE:WFT) is overvalued.