Recent insider trends for Cenovus Energy Inc. (NYSE:CVE) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on CVE is anything to go by, investors should pay attention.
Institutions own 75.48% of Cenovus Energy Inc. (CVE)’s shares. The total value of these holdings, in millions, is $6,975. Among active positions in the latest quarter, 116 holders increased their positions by a total of 304.41 million shares, 134 holders decreased the positions by a total of 58.88 million shares, and 62 holders held their positions. This works out to a net increase in ownership of 245.53 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 47 holders initiated new positions by a total of 235.91 million shares and 36 holders exited their positions by a total of 4.78 million shares. This nets out to an increase of 231.13 million shares and is a bullish sign for CVE.
Insider ownership increased by a total of 0 shares, which suggests that CVE’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: and ownership increased by a net of 0 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Cenovus Energy Inc. (NYSE:CVE)’s short interest is 22.57 million shares, or 2.22% of the float. This represents an increase of 12% 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.
Insider data can help an investor form an outlook on a stock, but it’s important to supplement this data with other information such as technical indicators to form a more complete view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CVE is a Strong sell, which implies that CVE 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 Cenovus Energy Inc. (NYSE:CVE) is overvalued.