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

Do you consider the buying trends of "smart money" investors when comparing stocks? We ran a screen with this idea in mind.

We began by screening the industrial goods sector for stocks with strong upward momentum, trading within 5% of their 52-week highs.

We then 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, despite trading near yearly highs.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think these companies are in trouble, or are hedge funds calling it wrong? Use this list as a starting point for your own analysis.

1. Avery Dennison Corporation (NYSE:AVY): Produces pressure-sensitive materials, office products, tickets, tags, labels, and other converted products. Market cap at $3.31B, most recent closing price at $33.23. Net institutional sales in the current quarter at -10.9M shares, which represents about 10.98% of the company's float of 99.26M shares.

2. Dover Corp. (NYSE:DOV): Manufactures and sells industrial products and components, and consumables. Market cap at $11.3B, most recent closing price at $63.12. Net institutional sales in the current quarter at -12.8M shares, which represents about 7.27% of the company's float of 175.99M shares.

3. Fushi Copperweld, Inc. (NASDAQ:FSIN): Develops, designs, manufactures, markets, and distributes bimetallic wire products, principally copper-clad aluminum (NYSEMKT:CCA) and copper-clad steel (NYSE:CCS). Market cap at $356.35M, most recent closing price at $9.28. Net institutional sales in the current quarter at -2.8M shares, which represents about 13.38% of the company's float of 20.93M shares.

4. Honeywell International Inc. (NYSE:HON): Operates as a diversified technology and manufacturing company worldwide. Market cap at $47.46B, most recent closing price at $60.59. Net institutional sales in the current quarter at -69.1M shares, which represents about 8.84% of the company's float of 782.10M shares.

5. Ingersoll-Rand Plc (NYSE:IR): Engages in the design, manufacture, sale, and service of a portfolio of industrial and commercial products in the United States and internationally. Market cap at $14.33B, most recent closing price at $47.61. Net institutional sales in the current quarter at -24.4M shares, which represents about 8.12% of the company's float of 300.31M shares.

6. Lennar Corp. (NYSE:LEN): Operates as a home builder and provider of financial services in the United States. Market cap at $7.31B, most recent closing price at $38.32. Net institutional sales in the current quarter at -55.7M shares, which represents about 34.04% of the company's float of 163.61M shares.

7. Lockheed Martin Corporation (NYSE:LMT): Engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. Market cap at $29.29B, most recent closing price at $90.51. Net institutional sales in the current quarter at -67.9M shares, which represents about 25.3% of the company's float of 268.38M shares.

8. Snap-on Inc. (NYSE:SNA): Snap-on Incorporated manufactures and markets tools, diagnostics, equipment, software, and service solutions for professional users in the United States, the United Kingdom, Canada, Germany, Japan, France, Australia, Spain, the Netherlands, Italy, China, and Sweden. Market cap at $4.52B, most recent closing price at $77.70. Net institutional sales in the current quarter at -6.1M shares, which represents about 10.54% of the company's float of 57.88M shares.

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

Source: Hedge Funds Are Selling These 8 Industrials Stocks Trading Near Highs