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Investors focus on potential takeover/LBO targets because, upon the announcement of a takeover, the target often jumps in stock price. Analysts speculate about potential takeover targets for this reason.

We screened recent potential takeover targets in the tech sector, rumored from various sources including Wall St. Cheat Sheet, TheStreet and The Motley Fool. We then screened that universe for those being bought up by the smart money, seeing significant net buying from institutional investors over the current quarter.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.



We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

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Do you think the smart money is right on these names? Use this list as a starting-off point for your own analysis.

List sorted by market cap.

1. Yahoo! Inc. (NASDAQ:YHOO): Internet Information Providers Industry. Market cap of $19.60B. During the current quarter, institutional investors have been net buyers of 45.4M shares, which represents 3.85% of the company's 1.18B share float. Takeover/LBO rumor sourced from Motley Fool. The stock has lost 10.26% over the last year.

2. Adobe Systems Inc. (NASDAQ:ADBE): Application Software Industry. Market cap of $15.87B. During the current quarter, institutional investors have been net buyers of 23.6M shares, which represents 4.74% of the company's 497.44M share float. Takeover rumor sourced from Seeking Alpha (BengalSniper). The stock has gained 2.88% over the last year.

3. Symantec Corporation (NASDAQ:SYMC): Security Software and Services Industry. Market cap of $14.90B. During the current quarter, institutional investors have been net buyers of 3.1M shares, which represents 0.41% of the company's 752.59M share float. Takeover rumor sourced from Wall St. Cheat Sheet. The stock has gained 17.59% over the last year.

4. Clearwire Corporation (CLWR):
Wireless Communications Industry. Market cap of $3.74B. During the current quarter, institutional investors have been net buyers of 14.7M shares, which represents 9.85% of the company's 149.19M share float. Takeover rumor sourced from Business Insider. The stock is a short squeeze candidate, with a short float at 28.81% (equivalent to 9.77 days of average volume). It has been a rough couple of days for the stock, losing 5.97% over the last week.

5. Entegris, Inc. (NASDAQ:ENTG): Semiconductor Equipment and Materials Industry. Market cap of $1.36B. During the current quarter, institutional investors have been net buyers of 6.3M shares, which represents 5.83% of the company's 107.99M share float. Takeover rumor sourced from iStockAnalyst. Exhibiting strong upside momentum - currently trading 12.83% above its SMA20, 17.03% above its SMA50, and 38.92% above its SMA200. The stock has had a good month, gaining 13.33%.

6. Leap Wireless International Inc. (LEAP): Wireless Communications Industry. Market cap of $1.28B. During the current quarter, institutional investors have been net buyers of 3.8M shares, which represents 4.92% of the company's 77.31M share float. Takeover rumor sourced from CNBC. The stock has gained 29.84% over the last year.

7. Kulicke & Soffa Industries Inc. (NASDAQ:KLIC): Semiconductor Equipment and Materials Industry. Market cap of $802.08M. During the current quarter, institutional investors have been net buyers of 4.8M shares, which represents 6.86% of the company's 70.02M share float. Takeover rumor sourced from Bloomberg Businessweek. This is a risky stock that is significantly more volatile than the overall market (beta = 2.67). The stock has gained 54.29% over the last year.

8. Camelot Information Systems Inc. (NYSE:CIS):
Information Technology Services Industry. Market cap of $671.25M. During the current quarter, institutional investors have been net buyers of 1.3M shares, which represents 4.90% of the company's 26.54M share float. Takeover rumor sourced from Seeking Alpha (Simon Monger). The stock has performed poorly over the last month, losing 18.08%.

9. Volterra Semiconductor Corporation (NASDAQ:VLTR): Semiconductor Circuits Industry. Market cap of $605.65M. During the current quarter, institutional investors have been net buyers of 229.5K shares, which represents 0.98% of the company's 23.36M share float. Takeover rumor sourced from EE Times. The stock is a short squeeze candidate, with a short float at 5.97% (equivalent to 8.83 days of average volume). The stock has had a couple of great days, gaining 5.16% over the last week.

*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.

Source: 9 Tech Takeover/LBO Targets Being Bought by Institutions