Do you look for contrarian opportunities in the market? If so, here's a list you might be interested in.
We began by screening the small-cap sector for stocks with bearish sentiment, with float shorts above 10%.
We then screened these names for those with the confidence of their company insiders, such as members of the board and upper management, with significant net insider purchases over the last six months representing at least 2% of share float. Since most companies only have a handful of company insiders, net insider purchases representing 2% of share float is a big show of confidence in their employer's prospects.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
Do you think these stocks are on the verge of short covering? Use this list as a starting point for your own analysis.
List sorted by net insider purchases as a percent of share float.
1. Vistaprint N.V. (VPRT): Operates as an online provider of marketing products and services to micro businesses worldwide. Market cap at $1.32B, most recent closing price at $38.69. Float short at 31.43%. Over the last six months, insiders were net buyers of 992,076 shares, which represents about 4.47% of the company's 22.19M share float.
2. Colfax Corporation (NYSE:CFX): Designs, manufactures, and distributes fluid handling products that transfer or control liquids in various applications worldwide. Market cap at $1.46B, most recent closing price at $33.66. Float short at 24.06%. Over the last six months, insiders were net buyers of 2,147,640 shares, which represents about 3.26% of the company's 65.93M share float.
3. Opko Health, Inc. (NYSE:OPK): Engages in the discovery, development, and commercialization of novel and proprietary technologies primarily in the United States, Chile, and Mexico. Market cap at $1.25B, most recent closing price at $4.24. Float short at 23.18%. Over the last six months, insiders were net buyers of 3,838,570 shares, which represents about 2.88% of the company's 133.07M share float.
4. Universal Display Corp. (NASDAQ:PANL): Engages in the research, development, and commercialization of organic light emitting diode ((NASDAQ:OLED)) technologies and materials for use in flat panel display, solid-state lighting, and other product applications. Market cap at $1.91B, most recent closing price at $41.18. Float short at 37.10%. Over the last six months, insiders were net buyers of 867,597 shares, which represents about 2.43% of the company's 35.64M share float.
Insider data sourced from Yahoo! Finance, 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.