Recent insider trends for QEP Resources, Inc. (NYSE:QEP) 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 QEP, the data has some interesting implications for where the stock might be headed.
Institutions own 90.60% of QEP Resources, Inc. (QEP)’s shares. The total value of these holdings, in millions, is $1,639. Among active positions in the latest quarter, 157 holders increased their positions by a total of 37.28 million shares, 123 holders decreased the positions by a total of 30.69 million shares, and 38 holders held their positions. This works out to a net increase in ownership of 6.59 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 52 holders initiated new positions by a total of 7.23 million shares and 33 holders exited their positions by a total of 5.09 million shares. This nets out to an increase of 2.13 million shares and is a bullish sign for QEP.
Insider ownership increased by a total of 0 shares, which suggests that QEP’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 5 buys and 7 sells, and ownership decreased by a net of 66271 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. QEP Resources, Inc. (NYSE:QEP)’s short interest is 20.41 million shares, or 9.03% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that QEP is a sell, which implies that QEP 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 bullish. Technical indicators (also) suggest that QEP Resources, Inc. (NYSE:QEP) is overvalued.