"Smart money" investors like institutions and company insiders get this complimentary name because they're in special positions of information power.
Institutional investors have access to sophisticated research, while company insiders know more about their companies than any other investors. When these groups of investors buy a stock, it's a signal to take a second look.
It also helps to add a dimension of technical analysis to this method. For instance, stocks rallying above their recent moving averages may have the momentum to push even higher. Technical momentum, coupled with smart money buying interest, can be an interesting trade.
We ran a screen to utilize the buying trends of these smart money investors. We first screened for stocks rallying above their 20-day, 50-day, and 200-day moving averages.
We then screened for those with buying attention from the smart money, seeing significant net buying from institutional investors over the current quarter and from company insiders over the last six months.
Do you agree with the bullish sentiment coming from these smart money investors?
List sorted alphabetically. (Click here to access free, interactive tools to analyze these ideas.)
2. Citizens Republic Bancorp
3. Lions Gate Entertainment
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Alexander Crawford does not own any of the shares mentioned above. Insider data sourced from Yahoo! Finance, institutional data sourced from Fidelity, all other data sourced from Finviz.
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