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 112.47% of Weatherford International plc (WFT)’s shares. The total value of these holdings, in millions, is $4,577. Among active positions in the latest quarter, 154 holders increased their positions by a total of 98.52 million shares, 158 holders decreased the positions by a total of 80.96 million shares, and 88 holders held their positions. This works out to a net increase in ownership of 17.56 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 40 holders initiated new positions by a total of 23.84 million shares and 42 holders exited their positions by a total of 20.41 million shares. This nets out to an increase of 3.43 million shares and is a bullish sign for WFT.
In the last three months, insiders executed a total of 2 trades. 2 were sells. Insider ownership decreased by a total of 8034 shares, which suggests that WFT’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 19 buys and 35 sells, and ownership increased by a net of 3.41 million shares.
Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Weatherford International plc (NYSE:WFT)’s short interest is 149.09 million shares, or 16.41% of the float. This represents an increase of 1% 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.
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 WFT. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that WFT is a buy, which implies that WFT 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 Weatherford International plc (NYSE:WFT) is undervalued.