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

If you're interested in the tech sector but don't know where to start, here are some ideas you may find interesting.

We ran a screen on the tech sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages. We then screened these stocks for those with the most significant net institutional purchases over the current quarter. This buying suggests institutional investors such as hedge fund managers and mutual fund managers believe these names will outperform.

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 rally higher like hedge funds anticipate? Use this list as a starting point for your own analysis.

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

1. NTT DOCOMO, Inc. (DCM): Provides wireless telecommunications services, packet communications services, and satellite mobile communications services in Japan. Market cap of $80.88B. The stock is currently trading at 3.83% above its 20-Day SMA, 4.15% above its 50-Day SMA, and 2.67% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 1.7M, which is 22.31% of the company's 7.62M share float. The stock has gained 7.54% over the last year.

2. SuccessFactors, Inc. (SFSF): Provides cloud-based business execution software solutions that enable organizations to bridge the gap between business strategy and results worldwide. Market cap of $3.35B. The stock is currently trading at 0.01% above its 20-Day SMA, 23.96% above its 50-Day SMA, and 32.52% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 8.2M, which is 9.83% of the company's 83.38M share float. The stock has gained 30.39% over the last year.

3. Bottomline Technologies Inc. (EPAY): Provides electronic payment, invoice, and document automation solutions to corporations, financial institutions, and banks worldwide. Market cap of $843.59M. The stock is currently trading at 4.27% above its 20-Day SMA, 3.65% above its 50-Day SMA, and 0.86% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 2.1M, which is 6.01% of the company's 34.92M share float. The stock has gained 6.31% over the last year.

4. Cognex Corporation (CGNX): Provides machine vision products that capture and analyze visual information to automate tasks, primarily in manufacturing processes. Market cap of $1.59B. The stock is currently trading at 7.57% above its 20-Day SMA, 10.79% above its 50-Day SMA, and 18.15% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 2.3M, which is 5.91% of the company's 38.91M share float. The stock is a short squeeze candidate, with a short float at 6.34% (equivalent to 11.53 days of average volume). The stock has had a couple of great days, gaining 6.35% over the last week.

5. Silicon Motion Technology Corp. (SIMO): Operates as a fabless semiconductor company. Market cap of $688.81M. The stock is currently trading at 7.20% above its 20-Day SMA, 14.19% above its 50-Day SMA, and 66.32% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 1.6M, which is 5.88% of the company's 27.22M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.08). The stock has had a couple of great days, gaining 9.11% over the last week.

6. GSI Group Inc. (GSIG): Designs, develops, manufactures, and sells precision motion control devices and associated precision technologies, photonics-based solutions, and semiconductor systems. Market cap of $363.40M. The stock is currently trading at 6.51% above its 20-Day SMA, 7.52% above its 50-Day SMA, and 5.01% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 1.5M, which is 5.87% of the company's 25.55M share float. The stock has had a couple of great days, gaining 8.68% over the last week.

7. Silicon Laboratories Inc. (SLAB): Engages in the design and development of analog-intensive and mixed-signal integrated circuits (ICS). Market cap of $1.85B. The stock is currently trading at 2.54% above its 20-Day SMA, 3.69% above its 50-Day SMA, and 11.52% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 2.1M, which is 5.79% of the company's 36.25M share float. The stock is a short squeeze candidate, with a short float at 16.01% (equivalent to 15.04 days of average volume). The stock has lost 7.07% over the last year.

8. Cepheid (CPHD): Develops, manufactures, and markets integrated systems for testing in the clinical market, as well as for application in legacy biothreat, industrial, and partner markets. Market cap of $2.20B. The stock is currently trading at 7.33% above its 20-Day SMA, 4.84% above its 50-Day SMA, and 5.04% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 3.4M, which is 5.42% of the company's 62.68M share float. The stock is a short squeeze candidate, with a short float at 11.3% (equivalent to 11.49 days of average volume). The stock has gained 44.76% over the last year.

9. InfoSpace, Inc. (INSP): Develops search tools and technologies that assist consumers with finding content and information on the Internet. Market cap of $438.46M. The stock is currently trading at 3.52% above its 20-Day SMA, 15.74% above its 50-Day SMA, and 21.75% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 1.7M, which is 5.29% of the company's 32.13M share float. The stock has had a good month, gaining 13.47%.

10. j2 Global, Inc. (JCOM): Provides outsourced, value-added communication, messaging, and data backup services to businesses of all sizes, from individuals to enterprises worldwide. Market cap of $1.37B. The stock is currently trading at 5.63% above its 20-Day SMA, 3.04% above its 50-Day SMA, and 1.62% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 2.3M, which is 5.17% of the company's 44.53M share float. The stock is a short squeeze candidate, with a short float at 19.53% (equivalent to 21.26 days of average volume). The stock has lost 1.64% over the last year.

11. Loral Space & Communications, Inc. (LORL): Operates as a satellite communications company. Market cap of $1.97B. The stock is currently trading at 1.73% above its 20-Day SMA, 4.76% above its 50-Day SMA, and 1.72% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 128.8K, which is 4.72% of the company's 2.73M share float. The stock has lost 17.99% over the last year.

12. Rudolph Technologies Inc. (RTEC): Designs, develops, manufactures, and sells process control defect inspection, metrology, and process control software systems to microelectronics device manufacturers. Market cap of $302.03M. The stock is currently trading at 6.67% above its 20-Day SMA, 12.83% above its 50-Day SMA, and 3.92% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 1.4M, which is 4.53% of the company's 30.89M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.03). The stock is a short squeeze candidate, with a short float at 8.38% (equivalent to 13.27 days of average volume). The stock has had a good month, gaining 15.75%.

13. Western Digital Corp. (WDC): Engages in the design, development, manufacture, and sale of hard drives worldwide. Market cap of $7.66B. The stock is currently trading at 7.63% above its 20-Day SMA, 16.73% above its 50-Day SMA, and 4.42% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 9.3M, which is 4.0% of the company's 232.74M share float. The stock has had a couple of great days, gaining 6.5% over the last week.

14. Ultratech, Inc. (UTEK): Develops, manufactures, and markets photolithography and laser thermal processing equipment. Market cap of $662.80M. The stock is currently trading at 8.59% above its 20-Day SMA, 13.49% above its 50-Day SMA, and 4.52% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 918.9K, which is 3.75% of the company's 24.52M share float. The stock is a short squeeze candidate, with a short float at 5.95% (equivalent to 5.19 days of average volume). The stock has had a couple of great days, gaining 6.62% over the last week.

15. Medidata Solutions, Inc. (MDSO): Provides software-as-a-service based clinical development solutions for life science organizations worldwide. Market cap of $528.06M. The stock is currently trading at 0.26% above its 20-Day SMA, 7.85% above its 50-Day SMA, and 4.11% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 806.6K, which is 3.63% of the company's 22.24M share float. The stock is a short squeeze candidate, with a short float at 8.54% (equivalent to 10.77 days of average volume). The stock has lost 7.35% over the last year.

16. Patni Computer Systems Limited (PTI): An information technology (IT) services company, provides a range of IT services through integrated onsite and offshore delivery locations. Market cap of $1.16B. The stock is currently trading at 4.53% above its 20-Day SMA, 9.13% above its 50-Day SMA, and 13.57% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 214.9K, which is 3.30% of the company's 6.51M share float. The stock has lost 18.2% over the last year.

17. Netgear Inc. (NTGR): Designs, develops and markets networking products for home users and small businesses worldwide. Market cap of $1.32B. The stock is currently trading at 3.02% above its 20-Day SMA, 2.31% above its 50-Day SMA, and 4.93% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 1.2M, which is 3.27% of the company's 36.73M share float. The stock has lost 2.12% over the last year.

18. Globecomm Systems Inc. (GCOM): Provides satellite-based communications infrastructure solutions and services. Market cap of $322.55M. The stock is currently trading at 7.09% above its 20-Day SMA, 7.15% above its 50-Day SMA, and 4.22% above its 200-Day SMA. Net institutional shares purchased over the current quarter at 618.6K, which is 3.02% of the company's 20.48M share float. The stock has had a couple of great days, gaining 7.22% over the last week.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 18 Rallying Tech Stocks Hedge Funds Want Most