12 High-Growth Small Caps Under $5 Being Bought Up By Hedge Funds

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 |  Includes: AMCN, AMRS, FSII, GLUU, HEOP, HZNP, MEMS, MRGE, NES, SLTM, SSKN, SYRG
by: Kapitall

Looking to add some growth to your portfolio? For a closer look at some interesting high-growth names, we ran a screen.

We began by screening for stocks trading under $5 a share for those with high growth, with 5-year projected EPS growth rates above 15%.

We then screened for those with the confidence of big money investors, with significant net institutional purchases over the last quarter, indicating that institutional investors such as hedge fund managers expect these names to outperform.

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 trading higher? Use this list as a starting point for your own analysis.

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

1. Heritage Oaks Bancorp (NASDAQ:HEOP): Operates as the holding company for Heritage Oaks Bank that provides commercial banking services to retail customers, and small to medium-sized businesses in California. Market cap at $124.54M, most recent closing price at $4.90. 5-year projected EPS growth at 16.00%. Net institutional purchases in the current quarter at 3.5M shares, which represents about 25.02% of the company's float of 13.99M shares.

2. Amyris, Inc. (NASDAQ:AMRS): Offers renewable compounds for a variety of markets. Market cap at $188.6M, most recent closing price at $3.24. 5-year projected EPS growth at 21.00%. Net institutional purchases in the current quarter at 5.1M shares, which represents about 24.06% of the company's float of 21.20M shares.

3. Synergy Resources Corporation (NYSEMKT:SYRG): Engages in the acquisition, exploitation, exploration, development, and production of oil and natural gas properties primarily located in the Wattenberg field in Denver-Julesburg Basin in northeast Colorado. Market cap at $163.17M, most recent closing price at $3.15. 5-year projected EPS growth at 17.50%. Net institutional purchases in the current quarter at 7.0M shares, which represents about 17.49% of the company's float of 40.03M shares.

4. Horizon Pharma, Inc. (NASDAQ:HZNP): Develops and commercializes medicines for the treatment of arthritis, pain, and inflammatory diseases. Market cap at $142.55M, most recent closing price at $4.25. 5-year projected EPS growth at 20.00%. Net institutional purchases in the current quarter at 2.3M shares, which represents about 14.62% of the company's float of 15.73M shares.

5. MELA Sciences, Inc. (MELA): Market cap at $129.47M, most recent closing price at $4.26. 5-year projected EPS growth at 32.50%. Net institutional purchases in the current quarter at 3.7M shares, which represents about 12.3% of the company's float of 30.09M shares.

6. 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. 5-year projected EPS growth at 33.75%. 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.

7. MEMSIC, Inc. (NASDAQ:MEMS): Provides semiconductor sensor and system solutions based on integrated micro electro-mechanical systems technology and mixed signal circuit design. Market cap at $105.8M, most recent closing price at $4.43. 5-year projected EPS growth at 20.00%. Net institutional purchases in the current quarter at 918.7K shares, which represents about 10.72% of the company's float of 8.57M shares.

8. Merge Healthcare Incorporated (NASDAQ:MRGE): Provides health information technology interoperability solutions. Market cap at $410.46M, most recent closing price at $4.51. 5-year projected EPS growth at 18.75%. 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.

9. Solta Medical, Inc. (NASDAQ:SLTM): Designs, develops, manufactures, and markets energy-based medical device systems for aesthetic applications. Market cap at $199.97M, most recent closing price at $3.26. 5-year projected EPS growth at 55.00%. Net institutional purchases in the current quarter at 3.1M shares, which represents about 7.45% of the company's float of 41.61M shares.

10. AirMedia Group Inc. (NASDAQ:AMCN): Operates digital media network in China for air travel advertising. Market cap at $193.29M, most recent closing price at $2.93. 5-year projected EPS growth at 20.00%. Net institutional purchases in the current quarter at 2.0M shares, which represents about 5.67% of the company's float of 35.25M shares.

11. FSI International Inc. (NASDAQ:FSII): Designs, manufactures, markets, and supports equipment used in the fabrication of microelectronics, such as advanced semiconductor devices. Market cap at $190.46M, most recent closing price at $4.90. 5-year projected EPS growth at 20.00%. Net institutional purchases in the current quarter at 1.9M shares, which represents about 5.49% of the company's float of 34.61M shares.

12. Heckmann Corporation (HEK): Acquires or makes investments in various businesses. Market cap at $572.96M, most recent closing price at $3.89. 5-year projected EPS growth at 27.50%. Net institutional purchases in the current quarter at 6.5M shares, which represents about 5.11% of the company's float of 127.27M 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.