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Here we present 5 small cap stocks that have seen net institutional selling over the current and prior quarters. However these stocks have also seen significant insider buying over the same period.

Do you think these insiders know something that institutions and the rest of us don’t know? Considering the divergence in opinion, what do you think of the list below?



List sorted by insider purchase as a percent of shares owned by insiders.

1. Mad Catz Interactive Inc. (NYSEMKT:MCZ): Toys & Games Industry. Market cap of $101.97M. Institutional shares sold during the current quarter at 44.7K and 41.0K shares sold during the previous quarter. Over the last 6 months, insiders made net purchases of 486,300 shares, representing 52.50% of shares held by insiders.

Note that MCZ is a risky stock that is significantly more volatile than the overall market (beta = 2.18). The stock has had a couple of great days, gaining 9.76% over the last week.

2. Hansen Medical, Inc. (NASDAQ:HNSN): Medical Appliances & Equipment Industry. Market cap of $110.59M. Institutional shares sold during the current quarter at 3.5M and 1.2M shares sold during the previous quarter. Over the last 6 months, insiders made net purchases of 1,010,000 shares, representing 16.20% of shares held by insiders. HNSN has lost 7.69% over the last year.

3. First Defiance Financial Corp. (NASDAQ:FDEF): Savings & Loans Industry. Market cap of $113.68M. Institutional shares sold during the current quarter at 123.6K and 30.7K shares sold during the previous quarter. Over the last 6 months, insiders made net purchases of 3,950 shares, representing 0.40% of shares held by insiders. FDEF has gained 31.95% over the last year.

4. First Financial Northwest, Inc. (NASDAQ:FFNW):
Regional Bank. Market cap of $105.71M. Institutional shares sold during the current quarter at 108.5K and 517.4K shares sold during the previous quarter. Over the last 6 months, insiders made net purchases of 18,702 shares, representing 0.40% of shares held by insiders. The stock has lost 20.96% over the last year.

5. McCormick & Schmick's Seafood Restaurants, Inc. (NASDAQ:MSSR): Restaurants Industry. Market cap of $111.45M. Institutional shares sold during the current quarter at 1.0M and 324.9K shares sold during the previous quarter. Over the last 6 months, insiders made net purchases of 1,700 shares, representing 0.10% of shares held by insiders.

Note that MSSR is a risky stock that is significantly more volatile than the overall market (beta = 2.46). The stock has performed poorly over the last month, losing 25.27%.

*Institutional data sourced from Fidelity, insider data sourced from Yahoo! Finance, 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.

Source: Insiders Are Buying These 5 Small Cap Stocks; Institutions Are Selling