Finance

Should You Invest in Nevsun Resources Ltd. (NSU)? A Look at the Insider Trends

Recent insider trends for Nevsun Resources Ltd. (NYSE:NSU) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. NSU’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 36.15% of Nevsun Resources Ltd. (NSU)’s shares. The total value of these holdings, in millions, is $236. Among active positions in the latest quarter, 37 holders increased their positions by a total of 9.59 million shares, 37 holders decreased the positions by a total of 10.76 million shares, and 22 holders held their positions. This works out to a net decrease in ownership of 1.18 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 10 holders initiated new positions by a total of 3.75 million shares and 13 holders exited their positions by a total of 7.23 million shares. This nets out to a decrease of 3.47 million shares and is another bearish sign for NSU.

Insider ownership increased by a total of 0 shares, which suggests that NSU’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.



Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Nevsun Resources Ltd. (NYSE:NSU)’s short interest is 2.3 million shares, or 0.77% of the float. This represents a decrease of -7% 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.

In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for NSU. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NSU is a Weak sell, which implies that NSU is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Nevsun Resources Ltd. (NYSE:NSU) is overvalued.

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