Recent insider trends for Matador Resources Company (NYSE:MTDR) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how MTDR might perform in the future.
Institutions own 86.05% of Matador Resources Company (MTDR)’s shares. The total value of these holdings, in millions, is $2,637. Among active positions in the latest quarter, 144 holders increased their positions by a total of 7.17 million shares, 96 holders decreased the positions by a total of 8.59 million shares, and 29 holders held their positions. This works out to a net decrease in ownership of 1.42 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 42 holders initiated new positions by a total of 2.1 million shares and 18 holders exited their positions by a total of 2.77 million shares. This nets out to a decrease of 671281 shares and is another bearish sign for MTDR.
In the last three months, insiders executed a total of 13 trades. 2 of these were buys and 11 were sells. Insider ownership decreased by a total of 175658 shares, which suggests that MTDR’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 47 buys and 28 sells, and ownership increased by a net of 12190 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. Matador Resources Company (NYSE:MTDR)’s short interest is 9.55 million shares, or 9.90% of the float. This represents a decrease of -13% 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.
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 MTDR is a Weak sell, which implies that MTDR 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 Matador Resources Company (NYSE:MTDR) is overvalued.