Recent insider trends for Hess Corporation (NYSE:HES) 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 HES, the data has some interesting implications for where the stock might be headed.
Institutions own 92.72% of Hess Corporation (HES)’s shares. The total value of these holdings, in millions, is $14,307. Among active positions in the latest quarter, 256 holders increased their positions by a total of 23.08 million shares, 237 holders decreased the positions by a total of 20.5 million shares, and 72 holders held their positions. This works out to a net increase in ownership of 2.58 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 82 holders initiated new positions by a total of 2.95 million shares and 47 holders exited their positions by a total of 2.7 million shares. This nets out to an increase of 251697 shares and is a bullish sign for HES.
In the last three months, insiders executed a total of 50 trades. 28 of these were buys and 22 were sells. Insider ownership decreased by a total of 94681 shares, which suggests that HES’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 28 buys and 27 sells, and ownership decreased by a net of 129610 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. Hess Corporation (NYSE:HES)’s short interest is 28.31 million shares, or 10.63% 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.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that HES is a Weak sell, which implies that HES 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 Hess Corporation (NYSE:HES) is overvalued.