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If you like to follow what the big money is buying, it is important to check valuations to see if there is more upside potential for the companies that money managers have bought.

Here we present a list of 6 stocks that have seen significant net buying from institutional investors over the current quarter. These stocks are also deeply undervalued relative to mean analyst target price.

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Although target price is known to have an upward bias, deep discounts from target price can indicate underpricing.

Do you think these stocks have more upside potential? Use this list as a starting-off point for your own analysis.

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

1. Citigroup, Inc. (NYSE:C): Money Center Banks Industry. Market cap of $121.29B. Target price at $57.98 vs. current price at $41.19 (implies a discount of 28.96%). Net institutional shares purchased over the current quarter at 300.8M, which is 10.34% of a 2.91B share float. The stock is a short squeeze candidate, with a short float at 13.31% (equivalent to 9.2 days of average volume).

2. General Motors Company (NYSE:GM): Auto Manufacturer. Market cap of $48.49B. Target price at $43.22 vs. current price at $31.10 (implies a discount of 28.04%). Net institutional shares purchased over the current quarter at 318.7M, which is 31.25% of a 1.02B share float.

3. Google Inc. (NASDAQ:GOOG): Internet Information Providers Industry. Market cap of $170.65B. Target price at $708.74 vs. current price at $518.42 (implies a discount of 26.85%). Net institutional shares purchased over the current quarter at 6.3M, which is 2.5% of a 252.18M share float. The stock has gained 4.34% over the last year.

4. Deutsche Bank AG (NYSE:DB): Foreign Money Center Banks Industry. Market cap of $56.74B. Target price at $80.00 vs. current price at $59.01 (implies a discount of 26.24%). Net institutional shares purchased over the current quarter at 27.6M, which is 2.99% of a 921.57M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). The stock has lost 2.79% over the last year.

5. Wells Fargo & Company (NYSE:WFC): Money Center Banks Industry. Market cap of $147.72B. Target price at $36.93 vs. current price at $27.86 (implies a discount of 24.56%). Net institutional shares purchased over the current quarter at 263.2M, which is 5.35% of a 4.92B share float. The stock has lost 12% over the last year.

6. Hewlett-Packard Company (NYSE:HPQ): Diversified Computer Systems Industry. Market cap of $87.44B. Target price at $52.73 vs. current price at $39.80 (implies a discount of 24.52%). Net institutional shares purchased over the current quarter at 97.8M, which is 4.53% of a 2.16B share float. The stock has lost 14.15% over the last year.

*Institutional data sourced from Fidelity, target price and all other data sourced from Finviz.

Source: 6 Institutional Picks Deeply Undervalued to Target Price