Short Sellers Think These 3 Dividend Tech Stocks Are Ready For Upside
When considering stocks, it's always helpful to gauge what the rest of the market thinks. One source for that is the number of shares shorted. Companies seeing significant increases in shares shorted are being viewed more negatively, and vice-versa.
To create the list below we screened the technology sector for stocks that are seeing the most significant decreases in shares shorted month-over-month. This indicates that growing number of short sellers are no longer bearish on these names.
Then we screened for stocks that paid a dividend of at least 1% but not more than 5%. This allowed us to stay away from the high yield space.
Our final list consisted of 3 stocks that met the criteria.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
A Closer Look
We looked at Lexmark International (LXK) in more detail. The stock trades around $23.21 versus its 52-week high of $38.34, down 40% in the past 1-year. The stock trades with a P/E multiple of 6 times, and pays a 5% dividend. The company's competitors Canon (CAJ), and Hewlett Packard (HPQ) pay a dividend of 4.3%, and 3.2%, respectively.
On January 29th, 2013, Lexmark International reported fourth quarter earnings per share of $0.61 versus consensus of $0.90. The primary reason for the miss in earnings was an increase in costs, which impacted the company's bottom-line results. More importantly, the company expects to realize $85 million in savings in 2013. Do you think this will trigger a turnaround for the stock?
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Do you think these stocks will outperform too? Use this list as a starting point for your own analysis.