Do you value the buying and selling trends of institutional investors? We ran a screen with this idea in mind.
We began by screening the healthcare sector for stocks with strong 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.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
Do you think these stocks are in hot water? Use this list as a starting point for your own analysis.
1. Coventry Health Care Inc. (CVH): Operates as a managed healthcare company in the United States. Market cap at $5.99B. Net institutional sales in the current quarter at -9.6M shares, which represents about 7.21% of the company's float of 133.21M shares. The stock is trading 1.06% below its 52-week high. The top 2 sellers of the stock are Greenlight Capital, and Barrow Hanley, Mewhinney & Strauss.
2. Forest Laboratories Inc. (NYSE:FRX): Develops, manufactures, and sells branded and generic forms of ethical drug products. Market cap at $9.86B. Net institutional sales in the current quarter at -13.4M shares, which represents about 5.76% of the company's float of 232.68M shares. The stock is trading 1.62% below its 52-week high. The 2 top sellers of the stock are State Street Corp., and Barclays Global.
3. HCA Holdings, Inc. (NYSE:HCA): Offers health care services in the United States. Market cap at $14.1B. Net institutional sales in the current quarter at -84.6M shares, which represents about 38.69% of the company's float of 218.64M shares. The stock is trading 0.71% below its 52-week high. The 2 top sellers of the stock are Blue Ridge Capital, and Susquehanna International.
4. SurModics Inc. (NASDAQ:SRDX): Provides drug delivery and surface modification technologies to the healthcare industry. Market cap at $339.82M. Net institutional sales in the current quarter at -2.3M shares, which represents about 15.76% of the company's float of 14.59M shares. The stock is trading 1.28% below its 52-week high. The 2 top sellers of the stock are Trigran Investments, and Rutabaga Capital Management.
*Institutional data sourced from Fidelity, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: Business relationship disclosure: Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.