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On 06/17/2012, we ran a screen for rallying stocks under $5 being heavily bought up by hedge funds. Since that time, the average one-year return among those companies has been 23%, ranging from -56.00% (Corcept Therapeutics Inc. (NASDAQ:CORT)) to 238.58% (Celldex Therapeutics Inc (NASDAQ:CLDX)). On average, the list yielded slightly better results than the 21.5% return of the S&P over the same period. Could hedge fund confidence have helped in their outperformance?

Interactive chart of the 1-year return of the names on the 6/17/12 list. Missing on this chart is YM Bioscience, which was bought out.

This week we decided to conduct the same search to see which companies met the same criteria.

As with our list screen, we began by screening stocks trading under $5 a share for those with positive market sentiment, rallying above their 20-day, 50-day, and 200-day moving averages (MA).

We then searched for further signs of upside by limiting our results to those with bullish sentiment from institutional investors, with significant net institutional purchases 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 outperform into the future.

We were left with nine companies, with no repeats from the original screen one year ago. The current average return over the last year for this new list is 40%, well above the market average.

The List

For an interactive version of this chart, click on the image below. One year returns sourced from Zacks Investment Research.

Do you think these companies will continue to rally? Use the list below as a starting point for your own analysis.

1. Progenics Pharmaceuticals Inc. (NASDAQ:PGNX): Engages in the development and commercialization of therapeutic products to treat the unmet medical needs of patients with debilitating conditions and life-threatening diseases in the United States and internationally.

  • Market cap at $240.56M, most recent closing price at $4.16
  • 20 day MA: 14.59%
  • 50 day MA: 8.61%
  • 200 day MA: 39.88%
  • Net institutional purchases in the current quarter at 4.1M shares, which represents about 8.98% of the company's float of 45.68M shares. The top holders of the stock are Federated Investors, Inc. (24.59%) and FMR LLC (11.09%).

2. Immunomedics Inc. (NASDAQ:IMMU): Engages in the research, development, manufacture, and marketing of monoclonal, antibody-based products for the treatment of cancer, autoimmune, and other serious diseases in the United States and Europe.

  • Market cap at $346.41M, most recent closing price at $4.36
  • 20 day MA: 12.83%
  • 50 day MA: 40.13%
  • 200 day MA: 41.83%
  • Net institutional purchases in the current quarter at 4.4M shares, which represents about 5.73% of the company's float of 76.82M shares. The top holders of the stock are FMR LLC (13.40%) and The Vanguard Group, Inc. (3.82%).

3. Chelsea Therapeutics International Ltd. (NASDAQ:CHTP): Chelsea Therapeutics International, Ltd., a development stage pharmaceutical company, focuses on the acquisition, development, and commercialization of pharmaceutical products for the treatment of various human diseases.

  • Market cap at $153.60M, most recent closing price at $2.37
  • 20 day MA: 12.15%
  • 50 day MA: 23.55%
  • 200 day MA: 66.63%
  • Net institutional purchases in the current quarter at 4.9M shares, which represents about 9.82% of the company's float of 49.92M shares. The top holders of the stock are Perceptive Advisors LLC (8.39%) and Baker Brothers Advisors, LLC (7.12%).

4. Anadigics, Inc. (NASDAQ:ANAD): Provides semiconductor solutions to the broadband wireless and wireline communications markets.

  • Market cap at $158.75M, most recent closing price at $2.11
  • 20 day MA: 8.48%
  • 50 day MA: 12.31%
  • 200 day MA: 18.35%
  • Net institutional purchases in the current quarter at 12.6M shares, which represents about 15.78% of the company's float of 79.84M shares. The top holders of the stock are WHV Investment Management, Inc. (5.46%) and FMR LLC (4.58%).

5. Sinovac Biotech Ltd. (NASDAQ:SVA): Engages in the research, development, manufacture, and commercialization of vaccines against the hepatitis A, hepatitis B, and influenza viruses in the People's Republic of China.

  • Market cap at $220.64M, most recent closing price at $3.88
  • 20 day MA: 5.92%
  • 50 day MA: 9.96%
  • 200 day MA: 27.34%
  • Net institutional purchases in the current quarter at 1.7M shares, which represents about 5.05% of the company's float of 33.65M shares. The top holders of the stock are Davis Selected Advisers, LP (4.81%) and Wellington Management Company, LLP (4.54%).

6. Pacific Biosciences of California, Inc. (NASDAQ:PACB): Develops, manufactures, and markets an integrated platform for genetic analysis.

  • Market cap at $160.07M, most recent closing price at $2.69
  • 20 day MA: 5.40%
  • 50 day MA: 12.22%
  • 200 day MA: 34.96%
  • Net institutional purchases in the current quarter at 2.8M shares, which represents about 7.46% of the company's float of 37.55M shares. The top holders of the stock are Deerfield Management (8.03%) and Maverick Capital Ltd. (5.81%).

7. Cowen Group, Inc. (NASDAQ:COWN): Cowen Group, Inc. is a publicly owned asset management holding company.

  • Market cap at $357.33M, most recent closing price at $3.04
  • 20 day MA: 4.78%
  • 50 day MA: 14.17%
  • 200 day MA: 20.64%
  • Net institutional purchases in the current quarter at 6.3M shares, which represents about 6.59% of the company's float of 95.65M shares. The top holders of the stock are William Blair & Company, L.L.C. (4.40%) and Royce & Associates, LLC (3.54%).

8. First Marblehead Corp. (NYSE:FMD): Provides outsourcing services for designing and implementing private education loan programs to national and regional financial institutions, and educational institutions in the United States.

  • Market cap at $131.11M, most recent closing price at $1.15
  • 20 day MA: 0.83%
  • 50 day MA: 2.92%
  • 200 day MA: 24.36%
  • Net institutional purchases in the current quarter at 3.5M shares, which represents about 6.41% of the company's float of 54.60M shares. The top holders of the stock are Mangrove Partners (9.86%) and Prescott Group Capital Management, L.L.C. (7.24%).

9. Office Depot, Inc. (NASDAQ:ODP): Office Depot, Inc., together with its subsidiaries, supplies office products and services.

  • Market cap at $1.19B, most recent closing price at $4.14
  • 20 day MA: 0.24%
  • 50 day MA: 6.68%
  • 200 day MA: 23.31%
  • Net institutional purchases in the current quarter at 47.9M shares, which represents about 20.07% of the company's float of 238.71M shares. The top holders of the stock are Starboard Value LP (14.58%) and The Vanguard Group, Inc. (5.41%).

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

Source: One Year Later: 9 Rallying Stocks Under $5 Attracting Hedge Funds