Recent insider trends for CNX Resources Corporation (NYSE:CNX) 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 CNX might perform in the future.
Institutions own 101.38% of CNX Resources Corporation (CNX)’s shares. The total value of these holdings, in millions, is $3,026. Among active positions in the latest quarter, 143 holders increased their positions by a total of 25.62 million shares, 116 holders decreased the positions by a total of 35.08 million shares, and 54 holders held their positions. This works out to a net decrease in ownership of 9.47 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 44 holders initiated new positions by a total of 3.11 million shares and 37 holders exited their positions by a total of 16.07 million shares. This nets out to a decrease of 12.96 million shares and is another bearish sign for CNX.
In the last three months, insiders executed a total of 18 trades. 13 of these were buys and 5 were sells. Insider ownership increased by a total of 794764 shares, which suggests that CNX’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 13 buys and 8 sells, and ownership increased by a net of 682018 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. CNX Resources Corporation (NYSE:CNX)’s short interest is 9.79 million shares, or 4.76% of the float. This represents a decrease of -8% 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 CNX. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CNX is a buy, which implies that CNX is expected to outperform 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 CNX Resources Corporation (NYSE:CNX) is undervalued.