6 Underperforming Stocks Being Bought by Insiders and Smart Money

|
 |  Includes: ETM, GLP, HYC, MERC, RFP, UXG
by: Kapitall

We've created an interesting list for anyone who follows the buying trends of company insiders or institutional investors. We screened for stocks that have been underperforming over the latest quarter, with a less than -20% return. We searched this universe for stocks also seeing significant net buying interest from institutional investors over the current quarter and company insiders over the last six months.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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.



List sorted by net insider purchases as a percent of share float.

1. AbitibiBowater Inc. Common Stoc (ABH): Paper & Paper Products Industry. Market cap of $1.73B. The stock has lost 33.26% over the last quarter. Net institutional shares purchased over the current quarter at 4.9M, which is 5.95% of the company's 82.31M share float. Net insider purchases over the last six months at 3.61M, which is 4.38% of the company's share float. The stock is a short squeeze candidate, with a short float at 9.87% (equivalent to 11.26 days of average volume). It's been a rough couple of days for the stock, losing 7.12% over the last week.

2. US Gold Corporation (NYSE:UXG): Gold Industry. Market cap of $887.51M. The stock has lost 26.69% over the last quarter. Net institutional shares purchased over the current quarter at 18.8M, which is 17.49% of the company's 107.47M share float. Net insider purchases over the last six months at 3.07M, which is 2.85% of the company's share float. It's been a rough couple of days for the stock, losing 6.06% over the last week.

3. Global Partners LP (NYSE:GLP): Basic Materials Wholesale Industry. Market cap of $456.20M. The stock has lost 21.32% over the last quarter. Net institutional shares purchased over the current quarter at 816.9K, which is 11.82% of the company's 6.91M share float. Net insider purchases over the last six months at 37.40K, which is 0.54% of the company's share float. The stock has performed poorly over the last month, losing 14.96%.

4. Hypercom Corp. (NYSE:HYC): Business Equipment Industry. Market cap of $533.04M. The stock has lost 26.40% over the last quarter. Net institutional shares purchased over the current quarter at 3.7M, which is 8.28% of the company's 44.71M share float. Net insider purchases over the last six months at 145.29K, which is 0.32% of the company's share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.05). The stock has performed poorly over the last month, losing 13.22%.

5. Mercer International Inc. (NASDAQ:MERC): Paper & Paper Products Industry. Market cap of $419.61M. The stock has lost 22.64% over the last quarter. Net institutional shares purchased over the current quarter at 3.7M, which is 10.69% of the company's 34.60M share float. Net insider purchases over the last six months at 98.53K, which is 0.28% of the company's share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.33). The stock has gained 70.18% over the last year.

6. Entercom Communications Corp. (NYSE:ETM): Broadcasting Industry. Market cap of $302.21M. The stock has lost 23.74% over the last quarter. Net institutional shares purchased over the current quarter at 2.0M, which is 10.47% of the company's 19.10M share float. Net insider purchases over the last six months at 37.20K, which is 0.19% of the company's share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.7). The stock is a short squeeze candidate, with a short float at 13.8% (equivalent to 15.86 days of average volume). It's been a rough couple of days for the stock, losing 6.09% over the last week.

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.