Recent insider trends for Precision Drilling Corporation (NYSE:PDS) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on PDS is anything to go by, investors should pay attention.
Institutions own 52.32% of Precision Drilling Corporation (PDS)’s shares. The total value of these holdings, in millions, is $500. Among active positions in the latest quarter, 67 holders increased their positions by a total of 29.25 million shares, 61 holders decreased the positions by a total of 55.76 million shares, and 24 holders held their positions. This works out to a net decrease in ownership of 26.51 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 28 holders initiated new positions by a total of 2.94 million shares and 18 holders exited their positions by a total of 7.92 million shares. This nets out to a decrease of 4.98 million shares and is another bearish sign for PDS.
Insider ownership increased by a total of 0 shares, which suggests that PDS’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.
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. Precision Drilling Corporation (NYSE:PDS)’s short interest is 12.14 million shares, or 4.16% of the float. This represents an increase of 22% 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 PDS is a Weak buy, which implies that PDS 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 Precision Drilling Corporation (NYSE:PDS) is undervalued.