Recent insider trends for Parsley Energy, Inc. (NYSE:PE) 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 PE might perform in the future.
Institutions own 101.51% of Parsley Energy, Inc. (PE)’s shares. The total value of these holdings, in millions, is $7,436. Among active positions in the latest quarter, 182 holders increased their positions by a total of 46.92 million shares, 173 holders decreased the positions by a total of 39.97 million shares, and 38 holders held their positions. This works out to a net increase in ownership of 6.95 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 51 holders initiated new positions by a total of 21.14 million shares and 66 holders exited their positions by a total of 13.37 million shares. This nets out to an increase of 7.77 million shares and is a bullish sign for PE.
Insider ownership increased by a total of 0 shares, which suggests that PE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 19 buys and 6 sells, and ownership decreased by a net of 1.51 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Parsley Energy, Inc. (NYSE:PE)’s short interest is 13.27 million shares, or % of the float. This represents a decrease of -6% 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 PE is a buy, which implies that PE 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 Parsley Energy, Inc. (NYSE:PE) is undervalued.