Equity Clock

Stocks with the Greatest Change in Institutional Ownership

Major institutions can’t be wrong, can they?   Many analysts like to gauge the “investability” of a particular stock by how institutions react to it.   Are they buying on net, placing their faith in the stock, or are they selling it to protect the interests of those that have trusted them with their money.   Institutions may not always have the same interests or objectives in mind when they make their transaction decisions, however their activity does provide a good indication of what may be driving supply or demand of a particular equity.

What are institutions doing on net as it pertains to S&P 500 indexed companies?

Using data obtained through MSN Money, 76.84% of stocks, on average, are institutionally owned.   With such a significant portion of stocks held by few entities, this can present a significant driver to the market if these institutions lose faith in the direction that things are headed.   Institutions have lightened their load as of recent, removing 1% of institutional positions from their books.   This could be profit taking, or it could mean that institutions are preparing, or have prepared, for a correction.   However, the insignificant amount of change leads me to believe that their faith in the market remains strong for the long-term outlook.   This decline translates to 147 more sellers, on average, in the market than buyers, relinquishing 1.5B shares.   A decent leading indicator to give sign that the short-term downturn we are currently witnessing has definitively concluded would be buyers outweighing sellers, but we are not quite there yet.   Until then, you will continue to see volumes significantly higher on down days than those that are up.

What stocks have shown the greatest increase in institutional ownership?

According to data obtained from MSN Money, the below stocks are the top 15 companies that have had the most significant change in institutional ownership as a result of recent purchases:

1. MERCK CO INC (MRK) – Percentage of Institutional Ownership as a result of recent Accumulation: 95.83% – Net Buyers/(Sellers): 936 – Accumulated Shares: 1571639808
2. CAREFUSION CORP (CFN) – Percentage of Institutional Ownership as a result of recent Accumulation: 92.98% – Net Buyers/(Sellers): 273 – Accumulated Shares: 144441616
3. CITIGROUP INC (C) – Percentage of Institutional Ownership as a result of recent Accumulation: 38.31% – Net Buyers/(Sellers): -53 – Accumulated Shares: 2681434624
4. E*TRADE Financial Corporation (ETFC) – Percentage of Institutional Ownership as a result of recent Accumulation: 21.79% – Net Buyers/(Sellers): 26 – Accumulated Shares: 212750816
5. FORD MOTOR CO (F) – Percentage of Institutional Ownership as a result of recent Accumulation: 15.54% – Net Buyers/(Sellers): 33 – Accumulated Shares: 284454016
6. NEW M&I CORPORATION (MI) – Percentage of Institutional Ownership as a result of recent Accumulation: 14.24% – Net Buyers/(Sellers): -32 – Accumulated Shares: 44258968
7. BOEING CO (BA) – Percentage of Institutional Ownership as a result of recent Accumulation: 14.08% – Net Buyers/(Sellers): -310 – Accumulated Shares: 73447904
8. FIDELITY NAT INF SVC (FIS) – Percentage of Institutional Ownership as a result of recent Accumulation: 11.64% – Net Buyers/(Sellers): 56 – Accumulated Shares: 26298826
9. AVERY DENNISON CP (AVY) – Percentage of Institutional Ownership as a result of recent Accumulation: 10.21% – Net Buyers/(Sellers): -103 – Accumulated Shares: 9957930
10. Huntington Bancshares Incorpora (HBAN) – Percentage of Institutional Ownership as a result of recent Accumulation: 9.38% – Net Buyers/(Sellers): -52 – Accumulated Shares: 38880160
11. PFIZER INC (PFE) – Percentage of Institutional Ownership as a result of recent Accumulation: 8.8% – Net Buyers/(Sellers): 405 – Accumulated Shares: 462945664
12. GENWORTH FINANCIAL (GNW) – Percentage of Institutional Ownership as a result of recent Accumulation: 7.96% – Net Buyers/(Sellers): -51 – Accumulated Shares: 34242976
13. PULTE HOMES, INC. (PHM) – Percentage of Institutional Ownership as a result of recent Accumulation: 7.77% – Net Buyers/(Sellers): -74 – Accumulated Shares: 23089916
14. HONEYWELL INTL INC (HON) – Percentage of Institutional Ownership as a result of recent Accumulation: 7.32% – Net Buyers/(Sellers): -178 – Accumulated Shares: 44098976
15. TOTAL SYSTEM SVC INC (TSS) – Percentage of Institutional Ownership as a result of recent Accumulation: 5.75% – Net Buyers/(Sellers): -73 – Accumulated Shares: 7227507

Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.

Stocks mentioned in this post: C, CFN, ETFC, F, MRK