Investing 101: Ten Breakout Stocks with Significant Institutional Buying

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(List compiled by Andrew Dominguez. Data sourced from Finviz and Fidelity.)

Looking for hot stocks being chased by big money mangers? To help you, we ran a screen for companies with SMA50 moving above SMA200 with net institutional buying above 2% of the share float. 

Need help with any of these terms? Here is a quick rundown of what you need to know.



Breakout stocks:
 If a stock's 50 day moving average crosses above its 200 day moving average, it is called a "Golden Cross." This is typically seen as a bullish signal. It is thought to be a significant favorable turning point, especially if the trend is confirmed by higher trading volume.


Institutional investors:
 Also known as "big money" investors or managers. They represent big pools of money such as investment banks, pension funds, mutual funds, hedge funds, endowment funds, etc. When they invest in stocks, they can invest hundreds of thousands of dollars or more at one time. These transactions, called "block trades,"" can have a significant effect on share prices.

Regular investors pay attention to what institutional investors do because it is easy enough to assume that the big money managers know what they are doing -- or at the very least know more than the average investor. This is why these investors are also sometimes referred to as "smart money". If institutional investors start investing in a company, regular investors can assume that some of the most talented analysts and money managers expect the company's share prices to increase over time.

Note: having a large portion of the stock owned by institutional investors is not always a positive attribute. For example, if a handful of institutional investors own a significant portion of a stock, if they were to all sell their shares at the same time, the share price would likely plummet. This might seem like an extreme scenario, but it has happened, as in the case of tech stocks during the tech bubble of the 1990s and early 2000s.

Also, investors should never blindly trust analysts or institutional investors or anybody else. Use information on institutional investing with other research before making any investing decisions.

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List sorted by net shares purchased by institutional investors as a percentage of the share float.

1. Cal-Maine Foods, Inc. (CALM): Farm Products industry with a market cap of $768.61M. Current price at $32.24. SMA50 at $29.47. SMA200 at $28.94. During the current quarter, institutional investors have bought 944.2K shares (net), which represents 6.74% of the 14.00M share float.

2. Casey's General Stores Inc. (CASY): Grocery Stores industry with a market cap of $1.74B. Current price at $45.75. SMA50 at $41.70. SMA200 at $40.80. During the current quarter, institutional investors have bought 2.5M shares (net), which represents 6.60% of the 37.87M share float.

3. Cogdell Spencer Inc. (CSA): Healthcare Facilities REIT industry with a market cap of $305.79M. Current price at $5.97. SMA50 at $5.91. SMA200 at $5.90. During the current quarter, institutional investors have bought 2.7M shares (net), which represents 5.54% of the 48.73M share float.

4. Tower Bancorp Inc. (TOBC): Northeast Regional Banks industry with a market cap of $329.25M. Current price at $27.51. SMA50 at $22.46. SMA200 at $21.92. During the current quarter, institutional investors have bought 493.1K shares (net), which represents 4.78% of the 10.31M share float.

5. ViaSat Inc. (VSAT): Communication Equipment industry with a market cap of $1.8B. Current price at $43.07. SMA50 at $42.16. SMA200 at $41.72. During the current quarter, institutional investors have bought 1.2M shares (net), which represents 4.65% of the 25.82M share float.

6. Marchex, Inc. (MCHX): Marketing Services industry with a market cap of $345.59M. Current price at $9.24. SMA50 at $8.05. SMA200 at $7.91. During the current quarter, institutional investors have bought 582.9K shares (net), which represents 3.37% of the 17.28M share float.

7. Monro Muffler Brake Inc. (MNRO): Auto Parts industry with a market cap of $1.12B. Current price at $36.95. SMA50 at $32.72. SMA200 at $32.54. During the current quarter, institutional investors have bought 953.2K shares (net), which represents 3.37% of the 28.25M share float.

8. UniFirst Corp. (UNF): Consumer Services industry with a market cap of $1.17B. Current price at $58.78. SMA50 at $52.72. SMA200 at $52.42. During the current quarter, institutional investors have bought 473.5K shares (net), which represents 3.23% of the 14.66M share float.

9. Sourcefire, Inc. (FIRE): Security Software & Services industry with a market cap of $831.01M. Current price at $28.90. SMA50 at $26.38. SMA200 at $25.97. During the current quarter, institutional investors have bought 635.5K shares (net), which represents 2.35% of the 27.09M share float.

10. Old National Bancorp. (ONB): Midwest Regional Banks industry with a market cap of $1.03B. Current price at $10.67. SMA50 at $10.67. SMA200 at $10.64. During the current quarter, institutional investors have bought 1.2M shares (net), which represents 1.29% of the 92.70M share float.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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