Recent insider trends for Callon Petroleum Company (NYSE:CPE) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. CPE’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 127.64% of Callon Petroleum Company (CPE)’s shares. The total value of these holdings, in millions, is $2,679. Among active positions in the latest quarter, 160 holders increased their positions by a total of 27.74 million shares, 131 holders decreased the positions by a total of 33.19 million shares, and 27 holders held their positions. This works out to a net decrease in ownership of 5.45 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 43 holders initiated new positions by a total of 6.69 million shares and 43 holders exited their positions by a total of 18.02 million shares. This nets out to a decrease of 11.33 million shares and is another bearish sign for CPE.
In the last three months, insiders executed a total of 4 trades. 4 were sells. Insider ownership decreased by a total of 157065 shares, which suggests that CPE’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 9 sells, and ownership decreased by a net of 223566 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. Callon Petroleum Company (NYSE:CPE)’s short interest is 43.46 million shares, or 21.65% of the float. This represents a decrease of -18% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CPE is a Weak sell, which implies that CPE 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 Callon Petroleum Company (NYSE:CPE) is overvalued.