19 Highly Shorted Tech Stocks Being Bought Up By Hedge Funds

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 |  Includes: APKT, CALD, CAVM, CEVA, CNVO, CRM, CRUS, GLUU, IPGP, JCOM, MRGE, OCZ, OLED, PKT, SFLY, SNCR, SREV, TTWO, TZOO
by: Kapitall

Do you consider yourself a contrarian investor, always looking for opportunities against the trend? For a closer look at potentially underestimated names, we ran a screen.

We began by screening the tech sector for stocks that are highly shorted, with float shorts above 10%.

We then screened these names for those with the backing of institutional investors such as hedge fund managers, with significant net institutional purchases over the last quarter.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks should be so highly shorted? Use this list as a starting point for your own analysis.

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

1. ServiceSource Corporation (NASDAQ:SREV): Provides service revenue management solutions that drive renewals of maintenance, support, and subscription agreements for technology companies. Market cap at $1.19B, most recent closing price at $16.0. Float short at 13.86%. Net institutional purchases in the current quarter at 8.7M shares, which represents about 23.57% of the company's float of 36.91M shares.

2. Shutterfly, Inc. (NASDAQ:SFLY): Provides an Internet-based social expression and personal publishing service that enables consumers to share, print, and preserve their memories through the medium of photography. Market cap at $1.09B, most recent closing price at $31.03. Float short at 22.84%. Net institutional purchases in the current quarter at 4.4M shares, which represents about 13.07% of the company's float of 33.66M shares.

3. Acme Packet, Inc. (NASDAQ:APKT): Provides session delivery network solutions that enable the delivery of interactive communications, such as voice, video, and multimedia sessions; and data services across internet protocol network borders. Market cap at $1.94B, most recent closing price at $28.64. Float short at 14.00%. Net institutional purchases in the current quarter at 7.1M shares, which represents about 12.27% of the company's float of 57.85M shares.

4. Universal Display Corp. (NASDAQ:PANL): Engages in the research, development, and commercialization of organic light emitting diode technologies and materials for use in flat panel display, solid-state lighting, and other product applications. Market cap at $1.87B, most recent closing price at $41.34. Float short at 29.34%. Net institutional purchases in the current quarter at 4.2M shares, which represents about 12.22% of the company's float of 34.37M shares.

5. Glu Mobile, Inc. (NASDAQ:GLUU): Engages in the design, marketing, and sale of casual and traditional mobile games worldwide. Market cap at $277.93M, most recent closing price at $4.43. Float short at 11.33%. Net institutional purchases in the current quarter at 5.9M shares, which represents about 11.85% of the company's float of 49.77M shares.

6. Procera Networks, Inc. (NASDAQ:PKT): Provides network traffic awareness, analysis, and control solutions for broadband service providers. Market cap at $302.08M, most recent closing price at $20.63. Float short at 11.30%. Net institutional purchases in the current quarter at 1.6M shares, which represents about 11.36% of the company's float of 14.09M shares.

7. Travelzoo Inc. (NASDAQ:TZOO): Publishes travel and entertainment offers from various travel and entertainment companies in North America and Europe. Market cap at $393.89M, most recent closing price at $24.73. Float short at 69.83%. Net institutional purchases in the current quarter at 822.7K shares, which represents about 11.03% of the company's float of 7.46M shares.

8. OCZ Technology Group, Inc. (NASDAQ:OCZ): Designs, develops, manufactures, and distributes computer components for computing devices and systems worldwide. Market cap at $194.83M, most recent closing price at $5.70. Float short at 33.56%. Net institutional purchases in the current quarter at 5.2M shares, which represents about 10.53% of the company's float of 49.40M shares.

9. Callidus Software Inc. (NASDAQ:CALD): Provides sales performance management software and services. Market cap at $269.53M, most recent closing price at $7.80. Float short at 11.75%. Net institutional purchases in the current quarter at 2.9M shares, which represents about 10.13% of the company's float of 28.62M shares.

10. Take-Two Interactive Software Inc. (NASDAQ:TTWO): Develops, and distributes interactive entertainment software, hardware, and accessories worldwide. Market cap at $1.27B, most recent closing price at $14.13. Float short at 18.13%. Net institutional purchases in the current quarter at 7.3M shares, which represents about 9.65% of the company's float of 75.67M shares.

11. j2 Global, Inc. (NASDAQ:JCOM): Provides outsourced, value-added communication, messaging, and data backup services to businesses of all sizes, from individuals to enterprises worldwide. Market cap at $1.18B, most recent closing price at $25.54. Float short at 23.92%. Net institutional purchases in the current quarter at 4.3M shares, which represents about 9.47% of the company's float of 45.41M shares.

12. Cavium, Inc. (NASDAQ:CAVM): Designs, develops, and markets semiconductor processors for intelligent and secure networks. Market cap at $1.37B, most recent closing price at $28.20. Float short at 13.96%. Net institutional purchases in the current quarter at 4.2M shares, which represents about 8.79% of the company's float of 47.79M shares.

13. Merge Healthcare Incorporated (NASDAQ:MRGE): Provides health information technology interoperability solutions. Market cap at $410.46M, most recent closing price at $4.51. Float short at 11.85%. Net institutional purchases in the current quarter at 2.2M shares, which represents about 8.26% of the company's float of 26.62M shares.

14. Cirrus Logic Inc. (NASDAQ:CRUS): Develops high-precision analog and mixed-signal integrated circuits. Market cap at $1.48B, most recent closing price at $26.39. Float short at 16.82%. Net institutional purchases in the current quarter at 4.2M shares, which represents about 6.62% of the company's float of 63.43M shares.

15. Salesforce.com (NYSE:CRM): Provides customer and collaboration relationship management services to various businesses and industries worldwide. Market cap at $20.65B, most recent closing price at $153.23. Float short at 10.02%. Net institutional purchases in the current quarter at 7.8M shares, which represents about 6.22% of the company's float of 125.48M shares.

16. Synchronoss Technologies, Inc. (NASDAQ:SNCR): Provides on-demand transaction, content, and connectivity management platforms that enable communications service providers, cable operators/multi-services operators, original equipment manufacturers, and e-Tailers/retailers with embedded connectivity primarily in North America. Market cap at $1.17B, most recent closing price at $30.43. Float short at 14.39%. Net institutional purchases in the current quarter at 1.6M shares, which represents about 6.02% of the company's float of 26.56M shares.

17. IPG Photonics Corporation (NASDAQ:IPGP): Manufactures fiber lasers and amplifiers for use in a range of markets, such as materials processing, advanced technologies, telecommunications, and medical applications. Market cap at $2.45B, most recent closing price at $47.93. Float short at 12.63%. Net institutional purchases in the current quarter at 2.2M shares, which represents about 5.87% of the company's float of 37.46M shares.

18. Convio, Inc. (NASDAQ:CNVO): Provides on-demand constituent engagement solutions that enable nonprofit organizations to raise funds, advocate for change, and cultivate relationships with donors, activists, volunteers, alumni, and other constituents in North America. Market cap at $282.17M, most recent closing price at $15.99. Float short at 19.49%. Net institutional purchases in the current quarter at 676.0K shares, which represents about 5.76% of the company's float of 11.74M shares.

19. CEVA Inc. (NASDAQ:CEVA): Engages in designing and licensing silicon intellectual property for the handsets, portable multimedia, and consumer electronics markets. Market cap at $479.47M, most recent closing price at $20.79. Float short at 11.66%. Net institutional purchases in the current quarter at 1.3M shares, which represents about 5.66% of the company's float of 22.98M shares.

*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.