Recent insider trends for CenterPoint Energy, Inc. (NYSE:CNP) 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 CNP might perform in the future.
Institutions own 79.96% of CenterPoint Energy, Inc. (CNP)’s shares. The total value of these holdings, in millions, is $10,026. Among active positions in the latest quarter, 238 holders increased their positions by a total of 31.74 million shares, 241 holders decreased the positions by a total of 25.94 million shares, and 107 holders held their positions. This works out to a net increase in ownership of 5.8 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 47 holders initiated new positions by a total of 3.05 million shares and 48 holders exited their positions by a total of 1.86 million shares. This nets out to an increase of 1.19 million shares and is a bullish sign for CNP.
In the last three months, insiders executed a total of 4 trades. 4 were sells. Insider ownership decreased by a total of 3821 shares, which suggests that CNP’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 22 buys and 26 sells, and ownership increased by a net of 155806 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. CenterPoint Energy, Inc. (NYSE:CNP)’s short interest is 5.24 million shares, or 1.22% of the float. This represents a decrease of -31% 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 CNP. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CNP is a Weak sell, which implies that CNP 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 bearish. Technical indicators (also) suggest that CenterPoint Energy, Inc. (NYSE:CNP) is overvalued.