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Analysts follow the buying trends of institutional investors (a.k.a. the “smart money”) because institutions spend more time analyzing companies and have more knowledge about those companies than most investors.

We ran a screen on dividend stocks that appear undervalued from two price ratios: PEG below 1 and P/FCF below 10. We screened these undervalued dividend stocks for those that have seen significant net institutional buying over the current quarter.

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.



Do you think institutional investors are calling it right? Use this list as a starting-off point for your own analysis.

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

1. Artio Global Investors Inc. (NYSE:ART): Asset Management Industry. Market cap of $548.73M. PEG at 0.52. P/FCF at 7.51. Dividend yield at 2.61%, payout ratio at 15.26%. Net institutional shares purchased over the current quarter at 2.1M, which is 7.43% of the company's 28.28M share float. The stock is a short squeeze candidate, with a short float at 8.01% (equivalent to 8.32 days of average volume). It's been a rough couple of days for the stock, losing 16.27% over the last week.

2. MKS Instruments Inc. (NASDAQ:MKSI): Diversified Machinery Industry. Market cap of $1.24B. PEG at 0.42. P/FCF at 7.79. Dividend yield at 2.52%, payout ratio at 10.63%. Net institutional shares purchased over the current quarter at 3.2M, which is 6.29% of the company's 50.91M share float. The stock is currently stuck in a downtrend, trading 9.59% below its SMA20, 9.43% below its SMA50, and 12.17% below its SMA200. The stock has gained 15.14% over the last year.

3. Nelnet Inc. (NYSE:NNI): Credit Services Industry. Market cap of $936.15M. PEG at 0.44. P/FCF at 4.12. Dividend yield at 2.07%, payout ratio at 18.06%. Net institutional shares purchased over the current quarter at 1.3M, which is 6.01% of the company's 21.62M share float. The stock is currently stuck in a downtrend, trading 10.26% below its SMA20, 11.62% below its SMA50, and 15% below its SMA200. The stock has performed poorly over the last month, losing 14.9%.

4. Best Buy Co. Inc. (NYSE:BBY): Electronics Stores Industry. Market cap of $9.54B. PEG at 0.84. P/FCF at 7.21. Dividend yield at 2.51%, payout ratio at 18.68%. Net institutional shares purchased over the current quarter at 17.0M, which is 5.64% of the company's 301.33M share float. The stock is currently stuck in a downtrend, trading 15.41% below its SMA20, 19.09% below its SMA50, and 27.65% below its SMA200. It's been a rough couple of days for the stock, losing 7.54% over the last week.

5. PH Glatfelter Co. (NYSE:GLT): Paper & Paper Products Industry. Market cap of $616.94M. PEG at 0.94. P/FCF at 5.14. Dividend yield at 2.69%, payout ratio at 22.89%. Net institutional shares purchased over the current quarter at 1.9M, which is 4.17% of the company's 45.55M share float. The stock is a short squeeze candidate, with a short float at 7.43% (equivalent to 10.88 days of average volume). It's been a rough couple of days for the stock, losing 11.2% over the last week.

6. Symetra Financial Corporation (NYSE:SYA): Life Insurance Industry. Market cap of $1.36B. PEG at 0.79. P/FCF at 1.51. Dividend yield at 2.09%, payout ratio at 13.13%. Net institutional shares purchased over the current quarter at 2.2M, which is 2.01% of the company's 109.59M share float. The stock is currently stuck in a downtrend, trading 12.34% below its SMA20, 14.6% below its SMA50, and 14.84% below its SMA200. It's been a rough couple of days for the stock, losing 8.52% 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: 6 Highly Undervalued Dividend Stocks Being Snapped Up by the Smart Money