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Comparing the performance of a stock to the buying trends of big investors can lead to some interesting results.

We ran a screen on stocks that have been underperforming the market over the latest quarter, with worse than -30% return. We screened these stocks for those that have also seen net buying from both institutional investors and company insiders over the last quarter and last six months, respectively.

This poses the question: are these knowledgeable investors simply wrong, or do they know something that the market hasn’t realized yet?

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.



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. Celldex Therapeutics, Inc. (NASDAQ:CLDX):
Engages in the development, manufacture, and commercialization of targeted immunotherapies that prevent or treat specific forms of cancer, autoimmune disorders, and diseases caused by infectious organisms. Market cap of $107.73M. The stock has lost 31.65% over the past quarter. Net institutional shares purchased over the current quarter at 8.7M, which is 21.01% of the company's 41.40M share float. Net insider shares purchased over the last six months at 77.50K, which is 0.19% of the company's 41.40M share float. The stock is a short squeeze candidate, with a short float at 11.63% (equivalent to 18.21 days of average volume). The stock has had a couple of great days, gaining 15.64% over the last week.

2. The McClatchy Company (NYSE:MNI):
Operates as a newspaper publisher in the United States. Market cap of $138.02M. The stock has lost 39.78% over the past quarter. Net institutional shares purchased over the current quarter at 9.9M, which is 20.38% of the company's 48.58M share float. Net insider shares purchased over the last six months at 318.80K, which is 0.66% 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.

3. The Howard Hughes Corporation (NYSE:HHC):
A real estate investment and development company, engaging in managing, developing, and leasing commercial, residential, and mixed-use real estate. Market cap of $1.65B. The stock has lost 30.54% over the past quarter. Net institutional shares purchased over the current quarter at 4.0M, which is 14.42% of the company's 27.73M share float. Net insider shares purchased over the last six months at 1.23M, which is 4.45% of the company's 27.73M share float. The stock has had a couple of great days, gaining 14.25% over the last week. The stock has performed poorly over the last month, losing 10.08%.

4. First Industrial Realty Trust Inc. (NYSE:FR):
Operates as a real estate investment trust. Market cap of $702.49M. The stock has lost 32.08% over the past quarter. Net institutional shares purchased over the current quarter at 9.8M, which is 12.18% of the company's 80.45M share float. Net insider shares purchased over the last six months at 76.10K, which is 0.09% of the company's 80.45M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.48). The stock has had a couple of great days, gaining 7.56% over the last week.

5. Jefferies Group Inc. (JEF):
Operates as a securities and investment banking company in the Americas, Europe, and Asia. Market cap of $2.17B. The stock has lost 38.37% over the past quarter. Net institutional shares purchased over the current quarter at 23.3M, which is 10.80% of the company's 215.77M share float. Net insider shares purchased over the last six months at 766.0K, which is 0.36% of the company's 215.77M share float. The stock has had a couple of great days, gaining 8.97% over the last week. The stock has performed poorly over the last month, losing 10.73%.

6. Lincoln Educational Services Corporation (NASDAQ:LINC):
Provides career-oriented post-secondary education services in the United States. Market cap of $192.72M. The stock has lost 54.02% over the past quarter. Net institutional shares purchased over the current quarter at 2.1M, which is 9.89% of the company's 21.23M share float. Net insider shares purchased over the last six months at 291.38K, which is 1.37% of the company's 21.23M share float. Might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 3.49. The stock has had a couple of great days, gaining 13.15% over the last week.

7. AOL, Inc. (NYSE:AOL):
Operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. Market cap of $1.40B. The stock has lost 34.16% over the past quarter. Net institutional shares purchased over the current quarter at 10.1M, which is 9.60% of the company's 105.22M share float. Net insider shares purchased over the last six months at 490.0K, which is 0.47% of the company's 105.22M share float. The stock is a short squeeze candidate, with a short float at 16.46% (equivalent to 6.01 days of average volume). The stock has had a couple of great days, gaining 14.65% over the last week. The stock has performed poorly over the last month, losing 11.21%.

8. Aeroflex Holding Corp. (NYSE:ARX):
Designs, engineers, manufactures, and sells microelectronics, and test solution and measurement equipment in the United States, Europe, the Middle East, Asia, and Australia. Market cap of $886.06M. The stock has lost 30.47% over the past quarter. Net institutional shares purchased over the current quarter at 1.5M, which is 7.59% of the company's 19.77M share float. Net insider shares purchased over the last six months at 23.80K, which is 0.12% of the company's 19.77M share float. The stock has had a couple of great days, gaining 22.65% over the last week.

9. Central European Media Enterprises Ltd. (NASDAQ:CETV):
Operates as a vertically integrated media company operating broadcast, content, and new media businesses in central and eastern European countries. Market cap of $627.16M. The stock has lost 47.29% over the past quarter. Net institutional shares purchased over the current quarter at 1.8M, which is 7.17% of the company's 25.11M share float. Net insider shares purchased over the last six months at 433.36K, which is 1.73% of the company's 25.11M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.24). The stock is a short squeeze candidate, with a short float at 12.67% (equivalent to 7.56 days of average volume). The stock has had a couple of great days, gaining 44.94% over the last week.

10. Furniture Brands International Inc. (FBN):
Designs, manufactures, sources, and retails home furnishings. Market cap of $112.66M. The stock has lost 50.49% over the past quarter. Net institutional shares purchased over the current quarter at 3.3M, which is 6.98% of the company's 47.26M share float. Net insider shares purchased over the last six months at 75.01K, which is 0.16% of the company's 47.26M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.63). The stock is a short squeeze candidate, with a short float at 9.17% (equivalent to 13.29 days of average volume). The stock has had a couple of great days, gaining 7.41% over the last week, but has performed poorly over the last month, losing 15.77%.

11. Capital Bank Corporation (CBKN):
Operates as the holding company for Capital Bank that provides general commercial banking products and services in North Carolina. Market cap of $196.48M. The stock has lost 37.60% over the past quarter. Net institutional shares purchased over the current quarter at 965.3K, which is 6.91% of the company's 13.97M share float. Net insider shares purchased over the last six months at 99.65K, which is 0.71% of the company's 13.97M share float. The stock is currently stuck in a downtrend, trading 20.03% below its SMA20, 28.03% below its SMA50, and 43.56% below its SMA200. The stock has had a couple of great days, gaining 24.46% over the last week.

12. The KEYW Holding Corporation (NASDAQ:KEYW):
Provides mission-critical cybersecurity and cyber superiority solutions to defense, intelligence, and national security agencies in the United States. Market cap of $204.65M. The stock has lost 32.29% over the past quarter. Net institutional shares purchased over the current quarter at 1.2M, which is 6.50% of the company's 18.46M share float. Net insider shares purchased over the last six months at 63.0K, which is 0.34% of the company's 18.46M share float. The stock is a short squeeze candidate, with a short float at 11.57% (equivalent to 14.67 days of average volume). The stock has had a couple of great days, gaining 13.33% over the last week but has performed poorly over the last month, losing 27.93%.

13. Chatham Lodging Trust (NYSE:CLDT):
REIT. Market cap of $137.23M. The stock has lost 36.43% over the past quarter. Net institutional shares purchased over the current quarter at 726.6K, which is 6.15% of the company's 11.82M share float. Net insider shares purchased over the last six months at 15.60K, which is 0.13% of the company's 11.82M share float. The stock has had a couple of great days, gaining 7.93% over the last week.

14. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS):
Provides engineering, war fighter, security, and information technology services, solutions, and products in the United States. Market cap of $222.89M. The stock has lost 45.90% over the past quarter. Net institutional shares purchased over the current quarter at 1.5M, which is 5.01% of the company's 29.95M share float. Net insider shares purchased over the last six months at 175.77K, which is 0.59% of the company's 29.95M share float. The stock is a short squeeze candidate, with a short float at 11.28% (equivalent to 12.18 days of average volume). The stock has had a couple of great days, gaining 10.22% over the last week but has performed poorly over the last month, losing 22.33%.

*Institutional data sourced from Fidelity, insider data sourced from Yahoo! Finance, all other data sourced from Finviz. Data sourced October 12th.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 14 Underperforming Stocks Seeing Hedge Fund And Company Insider Buying