Recent insider trends for Antero Resources Corporation (NYSE:AR) 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 AR, the data has some interesting implications for where the stock might be headed.
Institutions own 96.28% of Antero Resources Corporation (AR)’s shares. The total value of these holdings, in millions, is $5,302. Among active positions in the latest quarter, 161 holders increased their positions by a total of 25.66 million shares, 112 holders decreased the positions by a total of 24.97 million shares, and 44 holders held their positions. This works out to a net increase in ownership of 693579 shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 50 holders initiated new positions by a total of 2.37 million shares and 39 holders exited their positions by a total of 18.53 million shares. This nets out to a decrease of 16.15 million shares and is another bearish sign for AR.
In the last three months, insiders executed a total of 19 trades. 9 of these were buys and 10 were sells. Insider ownership decreased by a total of 32.51 million shares, which suggests that AR’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 36 buys and 29 sells, and ownership decreased by a net of 31.91 million 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. Antero Resources Corporation (NYSE:AR)’s short interest is 26.4 million shares, or 12.20% of the float. This represents an increase of 5% 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.
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 AR is a Strong sell, which implies that AR 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 bearish. Technical indicators (also) suggest that Antero Resources Corporation (NYSE:AR) is overvalued.