Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Traders and portfolio managers often look at above-average moves in the volume of stocks to track future volatility. Unusual volume can sometimes also indicate institutions buying and selling of the stocks. This information becomes even more relevant when the companies report earnings.

We wanted to focus on those stocks that had unusual volume so we ran a screen to measure relative volume, which reflects today's trading volume to the 3-month average trading volume. Each stock in this list has a Relative Volume indicator above 2.0, which means that current volume is more than double the 3-month average.

We then screened for names that have reported quarterly earnings in the last 5 days. Lastly, we looked for those names that are being sold by hedge funds.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 7 stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
(Click to enlarge)

Tool provided by Kapitall.

Do you think institutions are selling these stocks because of fundamental reasons or do you think it is purely for technical reasons? Here we have also provided you each company's earnings results. This will help determine the possible reason for unusual trading volume. The list below might be a good place to start your analysis.

1. Abercrombie & Fitch Co. (NYSE:ANF): Operates as a specialty retailer of casual apparel for men, women, and kids. Market cap at $3.46B, most recent closing price at $41.92. Net institutional sales in the current quarter at -5.5M shares, which represents about 6.76% of the company's float of 81.41M shares. Last earnings date November 14th, 2012. The company reported Q3-2012 EPS of $0.87, ane beat consensus by $0.28. Revenue of $1.17B was up 9% year-over-year.

2. Diamond Foods, Inc. (NASDAQ:DMND): Engages in processing, marketing, and distributing snack products, as well as culinary, in-shell, and ingredient nuts. Market cap at $430.17M, most recent closing price at $19.50. Net institutional sales in the current quarter at -1.3M shares, which represents about 6.5% of the company's float of 19.99M shares. Last earnings date November 14th, 2012. On November 14th, the company reported restated earnings for FY2010 and FY2011. Diamond also reported Q3-2012 earnings of $0.53 versus $1.54 from last year.

3. GameStop Corp. (NYSE:GME): Operates as a retailer of video game products and personal computer (PC) entertainment software. Market cap at $2.9B, most recent closing price at $23.48. Net institutional sales in the current quarter at -20.5M shares, which represents about 16.92% of the company's float of 121.13M shares. Last earnings date November 15th, 2012. GameStop reported Q3-2012 EPS of $0.38, which was $0.05 better than consensus. Revenues were $1.77B, up 9% year-over-year.

4. Ross Stores Inc. (NASDAQ:ROST): Operates off-price retail apparel and home accessories stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. Market cap at $12.35B, most recent closing price at $55.13. Net institutional sales in the current quarter at -12.4M shares, which represents about 5.71% of the company's float of 217.11M shares. Last earnings date November 15th, 2012. Ross reported Q3-2012 EPS of $0.72 in-line with consensus. Revenue of $2.26B was up 11% year-over-year.

5. Staples, Inc. (NASDAQ:SPLS): Operates as an office products company. Market cap at $7.88B, most recent closing price at $11.55. Net institutional sales in the current quarter at -38.1M shares, which represents about 5.63% of the company's float of 676.69M shares. Last earnings date November 14th, 2012. Staples reported Q3-2012 EPS of $0.46, which was $0.01 better than consensus. Revenues reported were $6.35B, down 2% year-over-year, and missed consensus by $100 million.

6. Target Corp. (NYSE:TGT): Operates general merchandise stores in the United States. Market cap at $40.2B, most recent closing price at $61.38. Net institutional sales in the current quarter at -73.4M shares, which represents about 11.88% of the company's float of 617.72M shares. Last earnings date November 15th, 2012. Target reported Q3-2012 EPS of $0.90, which was $0.09 better than consensus. Revenue for Q3-2012 were $16.6B, up 4% year-over-year.

7. Velti Plc (VELT): Provides mobile marketing and advertising solutions for mobile operators, ad agencies, brands, and media groups. Market cap at $430.01M, most recent closing price at $6.64. Net institutional sales in the current quarter at -2.8M shares, which represents about 5.13% of the company's float of 54.62M shares. Last earnings date November 14th, 2012. Velti reported Q3-2012 EPS loss of $0.03, and missed consensus by $0.06.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: Institutions Are Selling These 7 Stocks With Unusual Volume After Earnings