Recent insider trends for SM Energy Company (NYSE:SM) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of SM, the data has some interesting implications for where the stock might be headed.
Institutions own 111.02% of SM Energy Company (SM)’s shares. The total value of these holdings, in millions, is $2,537. Among active positions in the latest quarter, 126 holders increased their positions by a total of 22.74 million shares, 97 holders decreased the positions by a total of 9.57 million shares, and 52 holders held their positions. This works out to a net increase in ownership of 13.17 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 33 holders initiated new positions by a total of 9.1 million shares and 26 holders exited their positions by a total of 1.86 million shares. This nets out to an increase of 7.24 million shares and is a bullish sign for SM.
Insider ownership increased by a total of 0 shares, which suggests that SM’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 30 buys and 10 sells, and ownership increased by a net of 142284 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. SM Energy Company (NYSE:SM)’s short interest is 17.21 million shares, or 17.79% of the float. This represents a decrease of -2% 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.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for SM. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that SM is a Weak sell, which implies that SM 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 SM Energy Company (NYSE:SM) is overvalued.