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A very helpful area of sentiment analysis is institutional interest – whether institutional investors are buying or selling the given investment. Among other reasons, this is helpful because the investment decisions are presumably made by highly experienced managers, and because the trades are large and often have a significant effect on stock price.

Looking at undervalued stocks in the tech sector (with PEG <1), we wanted to find out which had seen institutional buying over the last quarter. This produced 12 companies, which are listed below.



Is there more upside to these popular names? Use this list as a starting-off point for your own analysis into the tech sector.

List sorted by institutional shares purchased as a percent of share float.

1. The KEYW Holding Corporation (KEYW)
: Security Software & Services Industry. Market cap of $307.44M. PEG at 0.91. Net institutional shares purchased over the current quarter at 9.6M, which is 51.50% of a 18.64M share float. The stock is a short squeeze candidate, with a short float at 6.74% (equivalent to 15.59 days of average volume). The stock has lost 2.52% over the last month.



2. Kongzhong Corp. (KONG):
Multimedia & Graphics Software Industry. Market cap of $323.76M. PEG at 0.93. Net institutional shares purchased over the current quarter at 817.4K, which is 12.02% of a 6.80M share float. After a solid performance over the last year, KONG has pulled back during recent sessions. The stock is 17.65% below its SMA20 and 8.62% below its SMA50, but remains 12.9% above its SMA200. The stock has gained 19.51% over the last year.



3. iGATE Corporation (IGTE): Information Technology Services Industry. Market cap of $950.29M. PEG at 0.94. Net institutional shares purchased over the current quarter at 2.5M, which is 9.76% of a 25.62M share float. The stock is currently stuck in a downtrend, trading 6.65% below its SMA20, 6.19% below its SMA50, and 7.59% below its SMA200. The stock has gained 35.6% over the last year.



4. Novell Inc. (NOVL): Security Software & Services Industry. Market cap of $2.15B. PEG at 0.84. Net institutional shares purchased over the current quarter at 28.8M, which is 9.42% of a 305.58M share float. The stock has gained 5.36% over the last year.

5. RF Micro Devices Inc. (RFMD): Semiconductor Industry. Market cap of $1.69B. PEG at 0.89. Net institutional shares purchased over the current quarter at 19.7M, which is 7.30% of a 270.02M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.51). The stock has gained 13.97% over the last year.

6. SMART Modular Technologies (WWH) Inc. (SMOD): Semiconductor Industry. Market cap of $511.01M. PEG at 0.88. Net institutional shares purchased over the current quarter at 3.8M, which is 6.15% of a 61.74M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.27). The stock has had a good month, gaining 19.08%.

7. Neutral Tandem, Inc. (TNDM): Wireless Communications Industry. Market cap of $509.59M. PEG at 0.9. Net institutional shares purchased over the current quarter at 1.9M, which is 6.05% of a 31.39M share float. TNDM has a relatively low correlation to the market (beta = 0.72), which may be appealing to risk-averse investors. The stock is a short squeeze candidate, with a short float at 11.8% (equivalent to 8.41 days of average volume). The stock has lost 8.14% over the last year.

8. Shanda Games Limited (GAME): Multimedia & Graphics Software Industry. Market cap of $2.10B. PEG at 0.97. Net institutional shares purchased over the current quarter at 3.5M, which is 4.88% of a 71.72M share float. The stock is exhibiting strong upside momentum--currently trading 9.26% above its SMA20, 12.99% above its SMA50, and 16.97% above its SMA200. The stock has had a couple of great days, gaining 9.28% over the last week.

9. Cree Inc. (CREE):
Semiconductor Equipment & Materials Industry. Market cap of $4.34B. PEG at 0.96. Net institutional shares purchased over the current quarter at 3.5M, which is 3.34% of a 104.69M share float. The stock is a short squeeze candidate, with a short float at 21.42% (equivalent to 5.89 days of average volume). CREE is currently stuck in a downtrend, trading 11.16% below its SMA20, 18.84% below its SMA50, and 31.15% below its SMA200. The stock has performed poorly over the last month, losing 19.02%.

10. Advanced Energy Industries, Inc. (AEIS): Diversified Electronics Industry. Market cap of $621.18M. PEG at 0.7. Net institutional shares purchased over the current quarter at 1.1M, which is 2.99% of a 36.85M share float. The stock has lost 18.07% over the last year.

11. Corning Inc. (GLW): Diversified Electronics Industry. Market cap of $32.05B. PEG at 0.78. Net institutional shares purchased over the current quarter at 31.7M, which is 2.03% of a 1.56B share float. The stock has had a couple of great days, gaining 5.84% over the last week.

12. InterDigital, Inc. (IDCC):
Wireless Communications Industry. Market cap of $2.08B. PEG at 0.77. Net institutional shares purchased over the current quarter at 903.1K, which is 2.02% of a 44.81M share float. IDCC has a relatively low correlation to the market (beta = 0.7), which may be appealing to risk-averse investors. The stock is a short squeeze candidate, with a short float at 18.07% (equivalent to 7.85 days of average volume). The stock has gained 55.82% over the last year.

*Institutional data sourced from Fidelity, PEG and 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: 12 Undervalued Tech Stocks Seeing Institutional Interest