It's been a while since we looked at the auto sector. The automobile sector has undergone major changes since the crisis in 2008. Sales were up 11% last year and are expected to be stable going forward. The automotive market still contributes around 5% to U.S. GDP.
Included below is the change in employment in the auto sector
Maybe hedge fund managers think that the auto ride is over. We ran a screen with this in mind.
We screened for those with bearish sentiment from institutional investors, with significant net institutional sales over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to underperform in the future.
Interactive Chart: Press Play to compare changes in the 1-year return for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
Do you think these stocks deserve this negative sentiment? Use this list as a starting point for your own analysis.
1. BorgWarner Inc. (BWA, Earnings, Analysts, Financials): Engages in the manufacture and sale of engineered automotive systems and components primarily for power train applications worldwide. Market cap at $8.92B, most recent closing price at $76.25. Net institutional sales in the current quarter at -5.9M shares, which represents about 5.11% of the company's float of 115.57M shares. The top 2 sellers of the stock are American Century Companies, and Wells Fargo.
2. Meritor, Inc. (MTOR, Earnings, Analysts, Financials): Provides drivetrain mobility and braking solutions for original equipment (OE) manufacturers of trucks, trailers, and specialty vehicles. Market cap at $535.69M, most recent closing price at $5.55. Net institutional sales in the current quarter at -4.8M shares, which represents about 5.52% of the company's float of 86.88M shares. The top 2 sellers of the stock are Wellington Management, and SG Americas.
3. Standard Motor Products Inc. (SMP, Earnings, Analysts, Financials): Distributes replacement parts for motor vehicles in the automotive aftermarket industry primarily in the United States, Canada, and Latin America. Market cap at $553.16M, most recent closing price at $24.24. Net institutional sales in the current quarter at -1.1M shares, which represents about 5.37% of the company's float of 20.48M shares. The top 2 sellers of the stock are Oppenheimer Funds, and Barclays Global Investors UK Holdings.
4. Westport Innovations Inc. (WPRT, Earnings, Analysts, Financials): Provides alternative fuel, low-emissions technologies that enable engines to operate on fuels, such as compressed natural gas, liquefied natural gas, hydrogen, and biofuels. Market cap at $1.53B, most recent closing price at $27.68. Net institutional sales in the current quarter at -4.0M shares, which represents about 8.98% of the company's float of 44.55M shares. The top 2 sellers of the stock are Soros Fund Management, and FMR, LLC.
List compiled by Sabina Bhatia. Institutional data sourced from Fidelity, all other data sourced from Finviz.
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- BorgWarner Inc. (BWA, Chart, Download SEC Filings)
- Meritor, Inc. (MTOR, Chart, Download SEC Filings)
- Standard Motor Products Inc. (SMP, Chart, Download SEC Filings)
- Westport Innovations Inc. (WPRT, Chart, Download SEC Filings)
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