Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)

Beta measures the linear relationship between a stock and the broader stock market. A beta above 1 implies that the stock often has larger reactions to changes in the business cycle than the broader market, while betas below 1 imply lesser reactions. Therefore, low-beta stocks are considered less volatile.

We ran a screen on stocks with betas below 0.5 for those that have seen net buying attention from institutional investors (a.k.a. the “smart money”) over the current quarter and from 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.

Click to enlarge


Do you think insiders and institutions are calling it right? Use this list as a starting point for your own analysis.

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

1. GeoEye, Inc. (NASDAQ:GEOY):
Information and Delivery Services Industry. Market cap of $859.75M. Beta at 0.31. Net institutional purchases over the current quarter at 667.5K, which is 3.35% of the company's 19.90M share float. Net insider purchases over the last six months at 810.0K, which is 4.07% of the company's share float. The stock has gained 14.94% over the last year.

2. US Gold Corporation (NYSE:UXG): Gold Industry. Market cap of $910.68M. Beta at -0.39. Net institutional purchases over the current quarter at 18.6M, which is 17.31% 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. The stock has had a good month, gaining 11.89%.

3. MAKO Surgical Corp. (NASDAQ:MAKO): Medical Appliances and Equipment Industry. Market cap of $1.12B. Beta at 0.21. Net institutional purchases over the current quarter at 2.0M, which is 6.41% of the company's 31.22M share float. Net insider purchases over the last six months at 485.14K, which is 1.55% of the company's share float. The stock is a short squeeze candidate, with a short float at 15.39% (equivalent to 6.23 days of average volume). The stock has performed poorly over the last month, losing 14.16%.

4. RLI Corp. (NYSE:RLI): Property and Casualty Insurance Industry. Market cap of $1.30B. Beta at 0.40. Net institutional purchases over the current quarter at 674.5K, which is 3.93% of the company's 17.15M share float. Net insider purchases over the last six months at 96.75K, which is 0.56% of the company's share float. The stock is a short squeeze candidate, with a short float at 9.37% (equivalent to 20.99 days of average volume). The stock has gained 25.8% over the last year.

5. Global Partners LP (NYSE:GLP): Basic Materials Wholesale Industry. Market cap of $446.27M. Beta at 0.46. Net institutional purchases 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 16.55%.

6. Iridium Communications Inc. (NASDAQ:IRDM): Communication Equipment Industry. Market cap of $607.55M. Beta at 0.12. Net institutional purchases over the current quarter at 2.1M, which is 5.05% of the company's 41.59M share float. Net insider purchases over the last six months at 85.10K, which is 0.20% of the company's share float. The stock is a short squeeze candidate, with a short float at 20.96% (equivalent to 18.75 days of average volume). The stock has lost 19.14% over the last year.

*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: 6 Low Beta Stocks Being Bought by Smart Money and Insiders