Recent insider trends for Gastar Exploration Inc. (NYSE:GST) 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 GST, the data has some interesting implications for where the stock might be headed.
Institutions own 61.09% of Gastar Exploration Inc. (GST)’s shares. The total value of these holdings, in millions, is $117. Among active positions in the latest quarter, 48 holders increased their positions by a total of 59.1 million shares, 43 holders decreased the positions by a total of 15.17 million shares, and 24 holders held their positions. This works out to a net increase in ownership of 43.93 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 17 holders initiated new positions by a total of 2.88 million shares and 21 holders exited their positions by a total of 11.16 million shares. This nets out to a decrease of 8.28 million shares and is another bearish sign for GST.
Insider ownership increased by a total of 0 shares, which suggests that GST’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 6 sells, and ownership increased by a net of 30.97 million 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. Gastar Exploration Inc. (NYSE:GST)’s short interest is 21.39 million shares, or 18.52% 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.
Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that GST is a Weak buy, which implies that GST 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 Gastar Exploration Inc. (NYSE:GST) is undervalued.