Today's Scan: Strong Stocks With Large Institutional and Insider Ownership
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Strong Stocks With Large Institutional and Insider Ownership
Insider Ownership and Institutional Ownership are two fundamental pieces of data that traders and investors should consider. Insider Ownership is the percentage of the stock's outstanding shares that are owned by insiders. Insiders are considered officers, directors, and employees. A high percent of Insider Ownership is considered bullish since it shows confidence in the company by people who know the most about future prospects. Like Insider Ownership, a high Institutional Ownership percentage is also extremely bullish. Institutions such as mutual funds are considered “smart money” since they have the best resources for determining future price movement of stocks. One caveat: It is important to also keep an eye on the percentages to make sure they are not decreasing. That would indicate sales from insiders and institutions and would be a bearish sign.
The following stocks all have high Insider Ownership AND high Institutional Ownership. Furthermore, they are all in the upper 70% of their one year price range, indicating that these are also strong momentum stocks:
-Equity One Inc. (NYSE: EQY): The Real Estate Investment Trust specializes in neighborhood and community shopping centers. Insiders own 47%.
-Campbell Soup Co. (NYSE: CPB) The iconic soup company founded in 1869 boasts an insider ownership of 44%. The stock is near a 52 week high.
-Emeritus Corp. (NYSE: ESC): Emeritus Corporation operates senior living communities in the United States. 58% of the company's shares are owned by institutions.
-Penske Automotive Group, Inc. (NYSE: PAG): Penske Automotive operates over 300 retail automobile dealerships worldwide. The largest shareholder is Roger Penske, and all insiders own 56%. The stock is near an all time high.
-Ixia (NSDQ:XXIA): Ixia supplies converged network and application performance testing solutions in the United States and internationally. 61% of the company's shares are held by institutions.
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