If you like to follow the buying trends of institutional investors such as hedge fund managers and mutual fund managers, you may be interested in this list.
We ran a screen on companies reporting their quarter 3 earnings next week for those that have seen significant net institutional purchases 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 these companies will report strong earnings next week? Use this list as a starting-off point for your own analysis.
List sorted by net institutional shares purchased as a percent of share float.
1. Morgan Stanley (MS): Provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. Market cap of $29.58B. Earnings to be released on 10/19. Net institutional shares purchased over the current quarter at 389.6M, which is 29.07% of the company's 1.34B share float. The stock has had a couple of great days, gaining 22.61% over the last week.
2. Fidelity Southern Corporation (LION): Operates as a bank holding company for Fidelity Bank that provides financial products and services primarily in Georgia. Market cap of $83.65M. Earnings to be released on 10/17. Net institutional shares purchased over the current quarter at 1.6M, which is 23.77% of the company's 6.73M share float. The stock has lost 1.68% over the last year.
3. Frisch's Restaurants Inc. (FRS): Operates restaurants in the United States. Market cap of $93.62M. Earnings to be released on 10/18. Net institutional shares purchased over the current quarter at 18.8K, which is 22.46% of the company's 83.70K share float. The stock has lost 3.36% over the last year.
4. The McClatchy Company (MNI): Operates as a newspaper publisher in the United States. Market cap of $138.02M. Earnings to be released on 10/21. Net institutional shares purchased over the current quarter at 9.9M, which is 20.38% of the company's 48.58M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.25). The stock is a short squeeze candidate, with a short float at 43.95% (equivalent to 38.57 days of average volume). The stock has had a couple of great days, gaining 28.57% over the last week.
5. Equity LifeStyle Properties, Inc. (ELS): A publicly owned real estate investment trust (REIT). Market cap of $2.51B. Earnings to be released on 10/18. Net institutional shares purchased over the current quarter at 5.7M, which is 15.84% of the company's 35.98M share float. The stock is a short squeeze candidate, with a short float at 5.39% (equivalent to 5.82 days of average volume). The stock has had a couple of great days, gaining 8.47% over the last week.
6. TrustCo Bank Corp. NY (TRST): Operates as the holding company for Trustco Bank that provides various banking products and services to individuals, partnerships, and corporations. Market cap of $431.28M. Earnings to be released on 10/17. Net institutional shares purchased over the current quarter at 13.5M, which is 15.04% of the company's 89.78M share float. The stock has had a couple of great days, gaining 8.43% over the last week.
7. Reynolds American Inc. (RAI): Manufactures and sells cigarette and other tobacco products in the United States. Market cap of $23.09B. Earnings to be released on 10/20. Net institutional shares purchased over the current quarter at 4.4M, which is 14.31% of the company's 30.74M share float. The stock has had a couple of great days, gaining 5.91% over the last week.
8. E*TRADE Financial Corporation (ETFC): Provides online brokerage and related products and services primarily to individual retail investors in the United States. Market cap of $2.67B. Earnings to be released on 10/19. Net institutional shares purchased over the current quarter at 29.0M, which is 12.13% of the company's 238.98M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.11). The stock has had a couple of great days, gaining 12.08% over the last week.
9. Diamond Offshore Drilling Inc. (DO): Operates as an offshore oil and gas drilling contractor worldwide. Market cap of $8.10B. Earnings to be released on 10/20. Net institutional shares purchased over the current quarter at 8.3M, which is 12.05% of the company's 68.90M share float. The stock is a short squeeze candidate, with a short float at 8.44% (equivalent to 5.34 days of average volume). The stock has had a couple of great days, gaining 10.11% over the last week.
10. Select Comfort Corporation (SCSS): Develops, manufactures, markets, and supports adjustable-firmness beds and other sleep-related accessory products in the U. Market cap of $867.85M. Earnings to be released on 10/19. Net institutional shares purchased over the current quarter at 6.2M, which is 11.69% of the company's 53.04M share float. The stock has had a couple of great days, gaining 24.9% over the last week.
11. Lattice Semiconductor Corporation (LSCC): Designs, develops, manufactures, and markets programmable logic products and related software. Market cap of $690.76M. Earnings to be released on 10/20. Net institutional shares purchased over the current quarter at 11.9M, which is 11.62% of the company's 102.38M share float. The stock has had a couple of great days, gaining 19.18% over the last week.
12. Extorre Gold Mines Ltd. Ordinar (XG): Engages in the acquisition, exploration, and development of mineral properties in Argentina. Market cap of $667.39M. Earnings to be released on 10/17. Net institutional shares purchased over the current quarter at 9.8M, which is 11.49% of the company's 85.31M share float. The stock has had a couple of great days, gaining 23.22% over the last week. The stock has performed poorly over the last month, losing 31.74%.
13. ITT Educational Services Inc. (ESI): Offers postsecondary-degree programs in the U.S. that provide diplomas as well as associate's, bachelor's, and master's degrees. Market cap of $1.69B. Earnings to be released on 10/20. Net institutional shares purchased over the current quarter at 1.8M, which is 10.12% of the company's 17.79M share float. Might be undervalued at current levels, with a PEG ratio at 0.89, and P/FCF ratio at 3.24. The stock is a short squeeze candidate, with a short float at 34.42% (equivalent to 11.65 days of average volume). The stock has had a couple of great days, gaining 13.95% over the last week.
14. 8x8 Inc. (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 $265.84M. Earnings to be released on 10/19. Net institutional shares purchased over the current quarter at 5.0M, which is 9.90% of the company's 50.52M share float. The stock has had a couple of great days, gaining 11.84% over the last week.
15. Westell Technologies Inc. (WSTL): Engages in the design, distribution, marketing, and servicing a range of broadband, digital transmission, remote monitoring, power distribution, and demarcation products used by telephone companies and other telecommunications service providers. Market cap of $157.37M. Earnings to be released on 10/19. Net institutional shares purchased over the current quarter at 4.7M, which is 9.73% of the company's 48.30M share float. The stock has had a couple of great days, gaining 13.43% over the last week.
16. Basic Energy Services, Inc. (BAS): Provides a range of well site services to oil and gas drilling and producing companies in the United States. Market cap of $694.58M. Earnings to be released on 10/20. Net institutional shares purchased over the current quarter at 2.5M, which is 9.30% of the company's 26.89M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.27). The stock has had a couple of great days, gaining 24.58% over the last week. The stock has performed poorly over the last month, losing 15.62%.
17. RSC Holdings, Inc. (RRR): Engages in the rental of construction and industrial equipment primarily in the United States and Canada. Market cap of $906.0M. Earnings to be released on 10/20. Net institutional shares purchased over the current quarter at 5.0M, which is 8.80% of the company's 56.82M share float. The stock has recently rebounded, and is currently trading 13% above its SMA20 and 10.56% above its SMA50. However, the stock still trades -22.45% below its SMA200. The stock has had a couple of great days, gaining 23.83% over the last week.
18. LaSalle Hotel Properties (LHO): Engages in the purchase, ownership, redevelopment, and leasing of primarily upscale and luxury full-service hotels in convention, resort, and urban business markets in the United States. Market cap of $1.70B. Earnings to be released on 10/19. Net institutional shares purchased over the current quarter at 7.4M, which is 8.75% of the company's 84.54M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.73). The stock has had a couple of great days, gaining 12.68% over the last week.
19. Cape Bancorp, Inc. (CBNJ): Operates as the holding company for the Cape Bank that provides a line of business and personal banking products to retail customers and small and mid-sized businesses primarily in Cape May and Atlantic Counties, New Jersey. Market cap of $103.42M. Earnings to be released on 10/21. Net institutional shares purchased over the current quarter at 739.1K, which is 8.56% of the company's 8.63M share float. The stock has had a couple of great days, gaining 15.8% over the last week.
20. F.N.B. Corporation (FNB): Provides various financial services to consumers and small to medium-sized businesses. Market cap of $1.18B. Earnings to be released on 10/19. Net institutional shares purchased over the current quarter at 9.8M, which is 7.94% of the company's 123.40M share float. The stock is a short squeeze candidate, with a short float at 13.61% (equivalent to 14.94 days of average volume). The stock has had a couple of great days, gaining 13.05% 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.
