Do you like to follow the buying and selling trends of institutional investors? We ran a screen with this idea in mind.
We began by screening for U.S.-traded stocks of Chinese companies.
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. Bona Film Group Limited (BONA): Distributes films in the People's Republic of China. Market cap at $590.67M, most recent closing price at $4.99. Net institutional sales in the current quarter at -1.1M shares, which represents about 38.06% of the company's float of 2.89M shares. The 2 top sellers of the stock are Tremblant Capital, and Schroeder Investment Management.
2. E-Commerce China Dangdang Inc. (DANG): Operates as a business-to-consumer e-commerce company in the People's Republic of China. Market cap at $347.61M, most recent closing price at $4.35. Net institutional sales in the current quarter at -3.3M shares, which represents about 6.24% of the company's float of 52.90M shares. The 2 top sellers of the stock are Manulife Asset Management, and Alkeon Capital Management LLC.
3. New Oriental Education & Technology Group (EDU): Provides private educational services primarily in the People's Republic of China. Market cap at $690.82M, most recent closing price at $17.99. Net institutional sales in the current quarter at -27.4M shares, which represents about 21.82% of the company's float of 125.59M shares. The 2 top sellers of the stock are T.Rowe Price, and JP Morgan Chase.
4. 7 Days Group Holdings Limited (SVN): Operates limited service economy hotels under the brand name of "7 Days Inn" in the People's Republic of China. Market cap at $615.25M, most recent closing price at $12.31. Net institutional sales in the current quarter at -3.2M shares, which represents about 14.93% of the company's float of 21.43M shares. The 2 top sellers of the stock are TCW Group, and Alkeon 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.
