Bullish Picks: 3 Semiconductor Stocks With Institutional Buying, Short Covering

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Includes: IPGP, TSL, VECO
by: Kapitall

Looking for semiconductor stocks radiating with optimism? We searched the industry for those with significant levels of institutional buying in the current quarter and short covering month over month.

Sophisticated investors are indicating heavy optimism in the 3 names that came through our screen. After all, institutional investors traditionally make large block trades, and a lot of analysis goes into their decisions. Short sellers too have a degree of sophistication that makes their net trading decision a point of interest for main street investors.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

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Do do you agree with the actions of these savvy investor groups? Could these names price in more upside over the coming weeks? Use this list as a starting-off point for your own analysis.

1. IPG Photonics Corporation (NASDAQ:IPGP): IPG Photonics Corporation 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 $3.24B, most recent closing price at $64.52. Net institutional purchases in the current quarter at 4.2M shares, which represents about 10.29% of the company's float of 40.83M shares. Shares shorted have decreased from 8.66M to 8.00M over the last month, a decrease which represents about 1.62% of the company's float of 40.83M shares. Days to cover ratio at 13.35 days.

2. Trina Solar Limited (NYSE:TSL): Designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide. Market cap at $327.15M, most recent closing price at $4.01. Net institutional purchases in the current quarter at 6.3M shares, which represents about 9.53% of the company's float of 66.11M shares. Shares shorted have decreased from 13.52M to 12.16M over the last month, a decrease which represents about 2.06% of the company's float of 66.11M shares. Days to cover ratio at 7.69 days.

3. Veeco Instruments Inc. (NASDAQ: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 $1.41B, most recent closing price at $36.20. Net institutional purchases in the current quarter at 2.7M shares, which represents about 6.97% of the company's float of 38.71M shares. Shares shorted have decreased from 9.41M to 8.47M over the last month, a decrease which represents about 2.43% of the company's float of 38.71M shares. Days to cover ratio at 11.21 days.

Institutional data sourced from Fidelity, short data from Yahoo! Finance, all other data sourced from Finivz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.