Recent insider trends for The AES Corporation (NYSE:AES) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on AES is anything to go by, investors should pay attention.
Institutions own 93.71% of The AES Corporation (AES)’s shares. The total value of these holdings, in millions, is $6,671. Among active positions in the latest quarter, 237 holders increased their positions by a total of 52.66 million shares, 214 holders decreased the positions by a total of 50.74 million shares, and 73 holders held their positions. This works out to a net increase in ownership of 1.92 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 45 holders initiated new positions by a total of 8.99 million shares and 44 holders exited their positions by a total of 5.18 million shares. This nets out to an increase of 3.82 million shares and is a bullish sign for AES.
In the last three months, insiders executed a total of 4 trades. 4 of these were buys. Insider ownership increased by a total of 48332 shares, which suggests that AES’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 11 buys and 24 sells, and ownership increased by a net of 223617 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. The AES Corporation (NYSE:AES)’s short interest is 12.8 million shares, or 1.95% of the float. This represents a decrease of -5% 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 AES is a buy, which implies that AES 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 bullish. Technical indicators (also) suggest that The AES Corporation (NYSE:AES) is undervalued.