Post date: 2024-01-24 11:28:45 GMT
Discover the Latest Moves of Institutions and HFTs - Find Out What Stocks are Being Bought and Sold This Week
Have you ever wondered what other sophisticated players are buying and selling? Two core products of AbleMarkets are institutional flows and flows generated by High-Frequency Traders (HFTs). AbleMarkets uses sophisticated artificial intelligence-based inferences to examine most of the market data in real time and understand and classify market activity. This week, AbleMarkets has observed institutional investors being bullish on several stocks, including Kellanova/Kellogg (K) and bearish on others like CorEnergy Infrastructure Trust (CORR). At the same time, HFTs were seen buying Ingersoll Rand (IR) and selling Deciphera Pharmaceuticals (DCPH), among other names discussed below.
Institutional investors often take several days to accumulate or divest a position, in order to 1) disturb the market as little as possible and 2) to conceal their trading activity as much as possible. Institutions also tend to accumulate for the long haul, so their activity is highly predictive of the future market movements.
As Figure 1 shows, while direction of net HFT and institutional flows are somewhat correlated, institutions and HFTs generally do their own thing. Unlike institutional investors, high-frequency traders trade stocks with the highest temporal inefficiencies, a.k.a., slowest alpha decay. Examples of such can be a chronically delayed response to news, or a lagged price response in a high-frequency statistical arbitrage. HFTs also bid up or depress the prices, but only for very short bursts. Unlike stocks impacted by institutional activity, stocks bought by HFTs are bound to decline in a short order, and stocks sold by HFTs are likely to rise quickly to their fundamental levels. HFTs generally have no interest in the economics underlying the corporate price moves and evaluate the attractiveness of the stock simply based on its short-term profit potential.
For the week of January 22, 2024, the top buys on the institutional minds are:
Kellanova, formerly Kellogg Co. (NYSE:K), a familiar cereal and other packaged consumer goods manufacturer
The top institutional sell picks were:
At the same time, the top companies that have interested HFT buyers are:
The top companies that have attracted HFT sellers this week are:
The companies discussed above are just the top names by the proportion of institutional and HFT activity in either buy or sell directions. AbleMarkets covers a vast universe of companies that are available for your research and investment needs. Click here to subscribe to AbleMarkets today!
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