Institutions Bought High-Beta, High-Priced Stocks in March 2024

Post date: 2024-04-04 11:18:10 GMT

Institutions Make Bold Move: Loaded Up on High-Beta, High-Priced Stocks

Institutions loaded up on high-beta, high-priced stocks in March 2024, AbleMarkets analysis shows. High beta stocks are the stocks that exhibit strong dependency on the market movements: they rise when the overall stock markets rise and fall when the stock markets fall. Investing into high-beta issues signals institutional belief in the market resiliency, at least in March 2024. The institutional activity in March is a reversal from their activity in February 2024, when the institutions opted for low beta stocks.

The institutional preference for high-priced stocks is also worth noting. Higher-priced stocks are typically issues of larger, more established and, therefore, more stable corporations. In contrast, cheaper stocks usually belong to small or faltering companies, subject to a lot more investment risk. Institutions clearly articulated their caution by focusing on established companies last month.

The March 2024 activity signifies a shift in institutional activity from a cautious February, where institutions mostly focused on low-beta, but also blue-chip stocks.

In March 2024, institutions piled into Toronto-based Fiera Capital Corp (TSE:FSZ),

Invesco S&P Emerging Markets Momentum ETF (EEMO), Biglari Holdings Inc Class B (BH), ALPS Emerging Sector Dividend Dogs ETF (EDOG), and Pioneer Natural Resources Co (PXD). At the same time, institutions divested of Rubicon Technology Inc (RBCN), First Trust Germany AlphaDEX Fund (FGM), Franklin Financial Services Corp (FRAF), Republic First Bancorp Inc (FRBK) and Molecular Templates Inc (MTEM).

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Disclaimer: This research report is for informational purposes only and should not be considered as a solicitation or recommendation to buy/sell securities. It is essential to conduct personal research and consult with a qualified financial advisor before making any investment decisions.