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

Do you consider smart money buying and selling when choosing among stocks? When smart money buying trends conflict with overall market sentiment, it can lead to some interesting observations.

We ran a screen with this idea in mind, beginning by screening stocks trading under $5 for those with positive market sentiment, rallying above their 20-day, 50-day, and 200-day moving averages.

We then screened these stocks for those with conflicting trends from institutional investors, with significant net institutional selling over the last quarter, representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to underperform.

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.

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.

Is the smart money wrong, or do they know something we don't? Use this list as a starting point for your own analysis.

List sorted by net institutional sales over the last quarter as a percent of share float.

1. Xinyuan Real Estate Co., Ltd. (NYSE:XIN): Engages in residential real estate development in China. Market cap at $260.36M, most recent closing price at $3.59. The stock is currently trading 6.40% above its 20-day moving average, 20.20% above its 50-day MA, and 58.29% above its 200-day MA. Net institutional sales in the current quarter at -3.8M shares, which represents about 22.5% of the company's float of 16.89M shares.

2. TranS1, Inc. (TSON): Focuses on the design, development, and marketing of products that implement its proprietary surgical approach to treat degenerative disc disease and instability affecting the lower lumbar region of the spine. Market cap at $101.1M, most recent closing price at $3.51. The stock is currently trading 3.10% above its 20-day moving average, 9.46% above its 50-day MA, and 22.23% above its 200-day MA. Net institutional sales in the current quarter at -2.4M shares, which represents about 19.95% of the company's float of 12.03M shares.

3. Denny's Corporation (NASDAQ:DENN): Engages in the ownership and operation of a chain of family-style restaurants. Market cap at $410.56M, most recent closing price at $4.23. The stock is currently trading 6.05% above its 20-day moving average, 3.22% above its 50-day MA, and 10.55% above its 200-day MA. Net institutional sales in the current quarter at -10.6M shares, which represents about 11.16% of the company's float of 94.99M shares.

4. Park Sterling Bank Inc. (NASDAQ:PSTB): Operates as a bank holding company for Park Sterling Bank that provides banking products and services in North Carolina and South Carolina. Market cap at $155.04M, most recent closing price at $4.69. The stock is currently trading 3.07% above its 20-day moving average, 1.87% above its 50-day MA, and 13.44% above its 200-day MA. Net institutional sales in the current quarter at -3.1M shares, which represents about 10.83% of the company's float of 28.62M shares.

5. Himax Technologies, Inc. (NASDAQ:HIMX): Designs, develops, and markets semiconductors for flat panel displays. Market cap at $378.61M, most recent closing price at $2.15. The stock is currently trading 1.66% above its 20-day moving average, 11.31% above its 50-day MA, and 49.00% above its 200-day MA. Net institutional sales in the current quarter at -7.4M shares, which represents about 8.7% of the company's float of 85.05M shares.

6. Le Gaga Holdings Ltd (NASDAQ:GAGA): Engages in cultivating, processing, and distributing vegetables. Market cap at $233.02M, most recent closing price at $4.80. The stock is currently trading 4.02% above its 20-day moving average, 5.31% above its 50-day MA, and 3.85% above its 200-day MA. Net institutional sales in the current quarter at -1.1M shares, which represents about 7.25% of the company's float of 15.17M shares.

7. Mitel Networks Corp. (NASDAQ:MITL): Provides integrated communications solutions primarily to the SME market in the United States and internationally. Market cap at $252.46M, most recent closing price at $4.70. The stock is currently trading 6.17% above its 20-day moving average, 17.50% above its 50-day MA, and 45.21% above its 200-day MA. Net institutional sales in the current quarter at -1.1M shares, which represents about 6.52% of the company's float of 16.87M shares.

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

Source: 7 Rallying Stocks Under $5 Being Sold Off By Hedge Funds