Recent insider trends for FuelCell Energy, Inc. (NASDAQ:FCEL) 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 FCEL, the data has some interesting implications for where the stock might be headed.
Institutions own 14.52% of FuelCell Energy, Inc. (FCEL)’s shares. The total value of these holdings, in millions, is $19. Among active positions in the latest quarter, 24 holders increased their positions by a total of 3.38 million shares, 38 holders decreased the positions by a total of 1.81 million shares, and 24 holders held their positions. This works out to a net increase in ownership of 1.57 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 5 holders initiated new positions by a total of 245905 shares and 13 holders exited their positions by a total of 562029 shares. This nets out to a decrease of 316124 shares and is another bearish sign for FCEL.
In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 890 shares, which suggests that FCEL’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 1 buys and 14 sells, and ownership decreased by a net of 17382 shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. FuelCell Energy, Inc. (NASDAQ:FCEL)’s short interest is 9.06 million shares, or 23.91% of the float. This represents a decrease of -1% 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.
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 FCEL is a buy, which implies that FCEL 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 FuelCell Energy, Inc. (NASDAQ:FCEL) is undervalued.