Recent insider trends for Oasis Petroleum Inc. (NYSE:OAS) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on OAS is anything to go by, investors should pay attention.
Institutions own 85.50% of Oasis Petroleum Inc. (OAS)’s shares. The total value of these holdings, in millions, is $1,778. Among active positions in the latest quarter, 125 holders increased their positions by a total of 34.8 million shares, 123 holders decreased the positions by a total of 30.61 million shares, and 32 holders held their positions. This works out to a net increase in ownership of 4.19 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 44 holders initiated new positions by a total of 5.47 million shares and 53 holders exited their positions by a total of 10.89 million shares. This nets out to a decrease of 5.41 million shares and is another bearish sign for OAS.
In the last three months, insiders executed a total of 29 trades. 13 of these were buys and 16 were sells. Insider ownership increased by a total of 494034 shares, which suggests that OAS’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 15 buys and 25 sells, and ownership increased by a net of 180813 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Oasis Petroleum Inc. (NYSE:OAS)’s short interest is 26.27 million shares, or 11.24% of the float. This represents a decrease of -5% 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 OAS is a Strong sell, which implies that OAS 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 Oasis Petroleum Inc. (NYSE:OAS) is overvalued.