Do you value the buying and selling trends of smart money investors? If so, you may be interested in this list of stocks.
We created our list by first screening the semiconductors industry for stocks that have outperformed the market over the last quarter, with quarterly performance above 10%.
We then screened for those with bearish sentiment from institutional investors, with significant net institutional sales 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 into the future.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
Tool provided by Kapitall (kapitall.com).
Do you think these stocks may soon turn south, or are hedge funds calling it wrong? Use this list as a starting point for your own analysis.
List sorted by net institutional sales as a percent of share float.
1. Sigma Designs, Inc. (SIGM): Provides integrated system-on-chip solutions (SoC) for the Internet protocol television (OTC:IPTV), media processor, connected home and media player, prosumer and industrial audio/video, high definition television, and PC-based add-in markets. Market cap at $207.6M, most recent closing price at $6.31. Performance over the last quarter at 18.83%. Net institutional sales in the current quarter at 3.8M shares, which represents about 12.93% of the company's float of 29.40M shares.
2. Spreadtrum Communications Inc. (SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Market cap at $828.04M, most recent closing price at $18.04. Performance over the last quarter at 34.83%. Net institutional sales in the current quarter at 4.1M shares, which represents about 12.68% of the company's float of 32.34M shares.
3. Veeco Instruments Inc. (VECO): Designs, manufactures, and markets equipment to make high brightness light emitting diodes (HB LEDs), solar panels, hard-disk drives, and other devices. Market cap at $1.23B, most recent closing price at $31.62. Performance over the last quarter at 17.59%. Net institutional sales in the current quarter at 2.6M shares, which represents about 6.77% of the company's float of 38.41M 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.