These 12 Stocks Screen for Significant Insider and Institutional Buying

These 12 Stocks Screen for Significant Insider and Institutional Buying

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

To put it simply, we created a list of stocks trading 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 12 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 1-year performances, while others have left much to be desired. List Average 1-Year Return: 63%.  

** We last ran this screen on 12/14. At the time the List Average 1-Year Return was 28%. It is now at 64%. There is considerable overlap between that list and the one below, with only the addition of Uranium Resources. Past performance does not guarentee future results. 

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:

List sorted by price. 

1. Pendrell Corporation (PCO, Earnings, Analysts, Financials): 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 $330.96M, most recent closing price at $1.27. Net institutional purchases in the current quarter at 36.2M shares, which represents about 22.67% of the company's float of 159.68M shares. Over the last six months, insiders were net buyers of 2,500,000 shares, which represents about 1.57% of the company's 159.68M share float.
 

 

2. Horizon Pharma, Inc. (HZNP, Earnings, Analysts, Financials): Develops and commercializes medicines for the treatment of arthritis, pain, and inflammatory diseases. Market cap at $147.18M, most recent closing price at $2.39. Net institutional purchases in the current quarter at 22.6M shares, which represents about 54.08% of the company's float of 41.79M shares. Over the last six months, insiders were net buyers of 575,356 shares, which represents about 1.38% of the company's 41.79M share float.
 

 

3. Nanosphere, Inc. (NSPH, Earnings, Analysts, Financials): Develops, manufactures, and markets a molecular diagnostics platform, the Verigene System that enables genomic and protein testing on a single platform. Market cap at $166.03M, most recent closing price at $2.96. 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.
 

4. Uranium Resources, Inc. (URRE, Earnings, Analysts, Financials): Engages in the acquisition, exploration, development, and mining of uranium properties, using the in situ recovery or solution mining process. Market cap at $69.26M, most recent closing price at $0.43. Net institutional purchases in the current quarter at 34.0M shares, which represents about 29.77% of the company's float of 114.22M shares. Over the last six months, insiders were net buyers of 34,330,500 shares, which represents about 30.06% of the company's 114.22M share float.
 

 

5. Golden Minerals Company (AUMN, Earnings, Analysts, Financials): Engages in the exploration and development of precious metals and other mineral properties in Mexico and South America. Market cap at $197.74M, most recent closing price at $4.10. Net institutional purchases in the current quarter at 2.1M shares, which represents about 6.35% of the company's float of 33.09M shares. Over the last six months, insiders were net buyers of 1,365,790 shares, which represents about 4.13% of the company's 33.09M share float.
 

 

6. Molycorp, Inc. (MCP, Earnings, Analysts, Financials): Focuses on the production and sale of rare earth oxides from stockpiled feedstocks in the western hemisphere. Market cap at $1.22B, most recent closing price at $8.83. Net institutional purchases in the current quarter at 8.6M shares, which represents about 9.45% of the company's float of 91.00M 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. Janus Capital Group, Inc. (JNS, Earnings, Analysts, Financials): A publicly owned asset management holding company. Market cap at $1.84B, most recent closing price at $9.82. Net institutional purchases in the current quarter at 10.9M shares, which represents about 5.92% of the company's float of 184.02M shares. Over the last six months, insiders were net buyers of 6,158,290 shares, which represents about 3.35% of the company's 184.02M share float.
 

 

8. Basic Energy Services, Inc. (BAS, Earnings, Analysts, Financials): Provides a range of well site services to oil and gas drilling and producing companies in the United States. Market cap at $531.89M, most recent closing price at $12.64. Net institutional purchases in the current quarter at 3.0M shares, which represents about 8.06% of the company's float of 37.21M shares. Over the last six months, insiders were net buyers of 389,570 shares, which represents about 1.05% of the company's 37.21M share float.
 

 

9. Repros Therapeutics Inc. (RPRX, Earnings, Analysts, Financials): Market cap at $318.6M, most recent closing price at $18.61. Net institutional purchases in the current quarter at 2.6M shares, which represents about 21.14% of the company's float of 12.30M shares. Over the last six months, insiders were net buyers of 557,500 shares, which represents about 4.53% of the company's 12.30M share float.
 

10. Genomic Health Inc. (GHDX, Earnings, Analysts, Financials): 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 $908.66M, most recent closing price at $29.55. Net institutional purchases in the current quarter at 1.3M shares, which represents about 8.15% of the company's float of 15.95M shares. Over the last six months, insiders were net buyers of 609,079 shares, which represents about 3.82% of the company's 15.95M share float.
 

 

11. Infinity Pharmaceuticals, Inc. (INFI, Earnings, Analysts, Financials): Engages in the discovery and development of medicines for the treatment of cancer and other conditions in the United States. Market cap at $1.39B, most recent closing price at $35.32. Net institutional purchases in the current quarter at 8.7M shares, which represents about 33.41% of the company's float of 26.04M shares. Over the last six months, insiders were net buyers of 5,158,726 shares, which represents about 19.81% of the company's 26.04M share float.
 

 

12. Tenet Healthcare Corp. (THC, Earnings, Analysts, Financials): Operates acute care hospitals and related health care facilities. Market cap at $4.07B, most recent closing price at $38.21. Net institutional purchases in the current quarter at 10.1M shares, which represents about 11.22% of the company's float of 90.03M shares. Over the last six months, insiders were net buyers of 3,000,000 shares, which represents about 3.33% of the company's 90.03M share float.
 

 

 

Did you find this list useful as a starting point for your analysis? Do you have a list requests? Leave your comments below and we’ll do our best to deliver.

 

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