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Analysts follow the buying trends of institutional investors such as hedge fund managers and mutual fund managers (a.k.a. the smart money) because they have access to sophisticated research and are very experienced in choosing investments. When a stock sees increased buying from institutional investors, it is a signal to take a second look.

We ran a screen on stocks trading under $5 that are also rallying above their 20-day, 50-day, and 200-day moving averages. We screened these 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 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.



Do you think these stocks will keep rallying? 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. Revett Minerals Inc (NYSEMKT:RVM): Engages in the exploration of copper and silver properties. Market cap of $159.46M. The stock is currently trading at 3.80% above its 20-Day SMA, 2.84% above its 50-Day SMA, and 5.70% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 5.6M, which is 27.94% of the company's 20.04M share float. The stock has had a couple of great days, gaining 10.61% over the last week.

2. Vista Gold Corp. (NYSEMKT:VGZ):
Engages in the evaluation, acquisition, exploration, and advancement of gold exploration and development projects in Australia, North America, and Indonesia. Market cap of $303.94M. The stock is currently trading at 15.28% above its 20-Day SMA, 25.51% above its 50-Day SMA, and 36.40% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 13.5M, which is 21.62% of the company's 62.44M share float. The stock has had a couple of great days, gaining 15.41% over the last week.

3. Midway Gold Corp. (NYSEMKT:MDW):
Engages in the acquisition, exploration, and development of mineral properties in North America. Market cap of $325.11M. The stock is currently trading at 13.61% above its 20-Day SMA, 19.54% above its 50-Day SMA, and 65.33% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 10.9M, which is 14.32% of the company's 76.11M share float. The stock has had a couple of great days, gaining 6.59% over the last week.

4. Banro Corporation (NYSEMKT:BAA): Engages in the acquisition, exploration, and development of gold properties in the Democratic Republic of the Congo (DRC). Market cap of $941.29M. The stock is currently trading at 0.20% above its 20-Day SMA, 6.76% above its 50-Day SMA, and 31.96% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 17.7M, which is 9.94% of the company's 178.13M share float. The stock has had a good month, gaining 17.14%.

5. 8x8 Inc. (NASDAQ:EGHT):
Develops and markets telecommunications services for Internet protocol (IP), telephony, and video applications, as well as provides Web-based conferencing and unified communications services. Market cap of $293.98M. The stock is currently trading at 9.37% above its 20-Day SMA, 11.08% above its 50-Day SMA, and 41.49% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 5.0M, which is 9.57% of the company's 52.27M share float. The stock has had a couple of great days, gaining 10.85% over the last week.

6. Claude Resources, Inc. (NYSEMKT:CGR):
Engages in the acquisition, exploration, and development of precious metal properties, as well as production and marketing of minerals in Canada. Market cap of $372.01M. The stock is currently trading at 10.92% above its 20-Day SMA, 17.78% above its 50-Day SMA, and 7.13% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 12.8M, which is 7.85% of the company's 163.14M share float. The stock has had a good month, gaining 15.23%.

7. BioClinica, Inc. (NASDAQ:BIOC):
Provides integrated clinical research technology solutions to pharmaceutical, biotechnology, and medical device companies. Market cap of $77.11M. The stock is currently trading at 0.89% above its 20-Day SMA, 2.11% above its 50-Day SMA, and 0.31% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 963.8K, which is 7.64% of the company's 12.62M share float. The stock has had a couple of great days, gaining 5.79% 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: 7 Rallying Smart Money Picks Trading Under $5