by Rebecca Lipman, Kapitall Wire editor
Looking for popular stocks with big potential upside? We find that stocks receiving bullish attention from company insiders and hedge funds, that is to say both groups have been buying up stocks, is a good indicator. With that in mind, we screened for stocks showing these signs.
Here’s more detail on what we screened for and why:
Insider Activity
Many analysts follow insider buying trends because, after all, those who work for the company tend to 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.
Here we look at insider buying 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 Activity
Institutional investors are also known as “big money” investors. They manage large pools of money such as mutual funds and hedge funds. 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 more than the average investor. This is why these investors are also sometimes referred to as “smart money,” and why their trades are so closely followed.
Business Section: Investing Ideas
As a recap, these names are
- Seeing net instituional buying in the current quarter
- Seeing net insider buying in the past six months
We were left with 10 names, listed below in details. Use this list as a starting point for your own analysis.
1. 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 $171.17M, most recent closing price at $4.02. Net institutional purchases in the current quarter at 2.1M shares, which represents about 6.26% of the company’s float of 33.56M shares. Over the last six months, insiders were net buyers of 1,365,790 shares, which represents about 4.07% of the company’s 33.56M share float.
2. 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 $453.2M, most recent closing price at $10.77. Net institutional purchases in the current quarter at 2.9M shares, which represents about 7.79% 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, 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 $867.46M, most recent closing price at $28.21. 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.
4. Horizon Pharma, Inc. (HZNP, Earnings, Analysts, Financials): Develops and commercializes medicines for the treatment of arthritis, pain, and inflammatory diseases. Market cap at $158.26M, most recent closing price at $2.57. 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, 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 $977.52M, most recent closing price at $24.76. 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, 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 $8.81. Net institutional purchases in the current quarter at 10.7M shares, which represents about 11.75% of the company’s float of 91.05M shares. Over the last six months, insiders were net buyers of 7,107,150 shares, which represents about 7.81% of the company’s 91.05M share float.
7. 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 $278.84M, most recent closing price at $1.07. Net institutional purchases in the current quarter at 43.0M shares, which represents about 26.45% of the company’s float of 162.60M shares. Over the last six months, insiders were net buyers of 2,500,000 shares, which represents about 1.54% of the company’s 162.60M share float.
8. Repros Therapeutics Inc. (RPRX, Earnings, Analysts, Financials): Market cap at $250.98M, most recent closing price at $14.66. 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.
9. Tenet Healthcare Corp. (THC, Earnings, Analysts, Financials): Operates acute care hospitals and related health care facilities. Market cap at $3.08B, most recent closing price at $28.95. Net institutional purchases in the current quarter at 10.2M shares, which represents about 11.25% of the company’s float of 90.63M shares. Over the last six months, insiders were net buyers of 3,000,000 shares, which represents about 3.31% of the company’s 90.63M share float.
10. 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 $56.36M, most recent closing price at $0.35. Net institutional purchases in the current quarter at 34.0M shares, which represents about 29.79% of the company’s float of 114.13M shares. Over the last six months, insiders were net buyers of 34,330,500 shares, which represents about 30.08% of the company’s 114.13M share float.
