11 Stocks With Significant Institutional And Insider Buying

Looking for stocks with bullish sentiment from both insiders and hedge funds? If so, you will likely find this list very interesting.

To put it simply, we created a list of stocks on the US exchanges experiencing significant levels of insider buying over the last six months and net positive investments from institutions over the current quarter. Using these criteria, we were left with 11 names, all listed below in detail.

Why It Matters

Many analysts follow  insider buying trends because, after all, insiders know more about their companies than anyone else. Their investment activity is closely monitored and can tell us a lot about where they feel the business is heading.

Insider buying is represented as a percentage of the share float. Companies experiencing insider buying over the past six months provide an indicator that insiders think the stock is undervalued at current levels. Inversely, insider selling serves as a negative indicator.

Institutional investors are also known as “big money” investors or managers. They represent big pools of money such as investment banks, pension funds, mutual funds, hedge funds, endowment funds, etc. When they invest in stocks, they can invest hundreds of thousands of dollars or more at one time. These transactions, called “block trades,” can have a significant effect on share prices.

Because institutional investors handle such large amounts of money, it is easy enough to assume that the big money managers know what they are doing — or at the very least know more than the average investor. This is why these investors are also sometimes referred to as “smart money.”

If institutional investors start investing in a company, regular investors can assume that some of the most talented analysts and money managers expect the company’s share prices to increase over time. The stocks on our list are experiencing significant investment from big money.

The List:

The following names have met all of the conditions above. Look at the charts below, or click  here and you’ll note that some of these stocks have had stellar y 1-year performances.

Do you think insiders and hedge funds are right in believing these names have significant upside to price in? Use this as a starting point for your own analysis:

 

1. Golden Minerals Company ( AUMN): Engages in the exploration and development of precious metals and other mineral properties in Mexico and South America. Market cap at $204.38M, most recent closing price at $4.80. Net institutional purchases in the current quarter at 2.1M shares, which represents about 6.07% of the company’s float of 34.62M shares. Over the last six months, insiders were net buyers of 1,365,790 shares, which represents about 3.95% of the company’s 34.62M share float.

 

2. Basic Energy Services, Inc. ( BAS): Provides a range of well site services to oil and gas drilling and producing companies in the United States. Market cap at $469.19M, most recent closing price at $11.15. Net institutional purchases in the current quarter at 2.7M shares, which represents about 7.25% of the company’s float of 37.22M shares. Over the last six months, insiders were net buyers of 389,570 shares, which represents about 1.05% of the company’s 37.22M share float.

 

3. Genomic Health Inc. ( GHDX): Focuses on the development and global commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer allowing physicians and patients to make individualized treatment decisions. Market cap at $872.38M, most recent closing price at $28.37. Net institutional purchases in the current quarter at 1.5M shares, which represents about 9.09% of the company’s float of 16.51M shares. Over the last six months, insiders were net buyers of 609,079 shares, which represents about 3.69% of the company’s 16.51M share float.

BONUS: Significant short covering month-over-month: Shares shorted have decreased from 2.38M to 2.00M over the last month, a decrease which represents about 2.3% of the company’s float of 16.51M shares. Days to cover ratio at 8.04 days.

 

4. Horizon Pharma, Inc. ( HZNP): Develops and commercializes medicines for the treatment of arthritis, pain, and inflammatory diseases. Market cap at $148.41M, most recent closing price at $2.41. Net institutional purchases in the current quarter at 22.6M shares, which represents about 54.03% of the company’s float of 41.83M shares. Over the last six months, insiders were net buyers of 575,356 shares, which represents about 1.38% of the company’s 41.83M share float.

 

5. Infinity Pharmaceuticals, Inc. ( INFI): Engages in the discovery and development of medicines for the treatment of cancer and other conditions in the United States. Market cap at $1.04B, most recent closing price at $26.33. Net institutional purchases in the current quarter at 8.7M shares, which represents about 39.28% of the company’s float of 22.15M shares. Over the last six months, insiders were net buyers of 5,158,726 shares, which represents about 23.29% of the company’s 22.15M share float.

 

6. Molycorp, Inc. ( MCP): Focuses on the production and sale of rare earth oxides from stockpiled feedstocks in the western hemisphere. Market cap at $1.52B, most recent closing price at $10.99. Net institutional purchases in the current quarter at 10.1M shares, which represents about 17.82% of the company’s float of 56.68M shares. Over the last six months, insiders were net buyers of 7,107,150 shares, which represents about 7.81% of the company’s 91.00M share float.

 

7. Nanosphere, Inc. ( NSPH): Develops, manufactures, and markets a molecular diagnostics platform, the Verigene System that enables genomic and protein testing on a single platform. Market cap at $159.86M, most recent closing price at $2.85. Net institutional purchases in the current quarter at 4.9M shares, which represents about 12.34% of the company’s float of 39.72M shares. Over the last six months, insiders were net buyers of 1,924,100 shares, which represents about 4.84% of the company’s 39.72M share float.

BONUS: Significant short covering month-over-month:  Shares shorted have decreased from 3.11M to 1.56M over the last month, a decrease which represents about 3.9% of the company’s float of 39.72M shares. Days to cover ratio at 2.33 days.

 

8. Pendrell Corporation ( PCO): Through its wholly-owned subsidiary, Pendrell Technologies, Inc., provides corporate intellectual property solutions and litigation insights to Fortune 500 companies and technology firms worldwide. Market cap at $304.9M, most recent closing price at $1.17. Net institutional purchases in the current quarter at 36.2M shares, which represents about 25.41% of the company’s float of 142.45M shares. Over the last six months, insiders were net buyers of 2,500,000 shares, which represents about 1.76% of the company’s 142.45M share float.

 

9. Repros Therapeutics Inc. ( RPRX): Market cap at $239.68M, most recent closing price at $14.0. Net institutional purchases in the current quarter at 2.6M shares, which represents about 20.44% of the company’s float of 12.72M shares. Over the last six months, insiders were net buyers of 557,500 shares, which represents about 4.38% of the company’s 12.72M share float.

 

10. Tenet Healthcare Corp. ( THC): Operates acute care hospitals and related health care facilities. Market cap at $3.21B, most recent closing price at $30.15. Net institutional purchases in the current quarter at 10.3M shares, which represents about 11.44% of the company’s float of 90.02M shares. Over the last six months, insiders were net buyers of 3,000,000 shares, which represents about 3.33% of the company’s 90.02M share float.

 

11. Uranium Resources, Inc. ( URRE): Engages in the acquisition, exploration, development, and mining of uranium properties, using the in situ recovery or solution mining process. Market cap at $53.14M, most recent closing price at $0.33. Net institutional purchases in the current quarter at 34.0M shares, which represents about 29.66% of the company’s float of 114.65M shares. Over the last six months, insiders were net buyers of 34,330,500 shares, which represents about 29.94% of the company’s 114.65M share float.

 

Compare 1 year returns and analyst ratings for the stocks listed above:


 

Written by Rebecca Lipman.

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