Hedge Funds Hate Apple And 20 Other Tech Stocks
DAN CONNELLY, KAPITALL Apple’s ( AAPL) stock price has taken a significant hit over the last few months. If you are at all familiar with the markets, then you must be well aware of this familiar refrain. However, new insights as to what fueled that decrease in share price are now becoming public, and it seems the big names investors are to blame.
Over the last few months of 2012, a number of prominent investors and hedge funds sold off huge chunks of their Apple stocks. Leon Cooperman, the patriarchal market figure who runs Omega Advisors, sold all of his shares in the fourth quarter of 2012 as well as his firm’s 266,000 shares. During the same time, Jana Partners completely divested itself of 143,000 shares. Finally, Thomas Steyer, who runs Farallon Capital, sold 137,000 shares.
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While developmental stagnation and sitting on a huge pile of cash may also be culprits for Apple’s poor showing over the recent period, divestments of this magnitude from such high profile investors certainly accelerated the drop in share price. The stock price ended 2012 down 24% from its peak and has lost an additional 12% so far this year. The failure to utilize huge cash sums has caused additional consternation from investors. David Einhorn, who runs Greenlight Capital and has a $600 million stake in the Apple, is suing the company to spend their cash in hopes of halting the downward trend.
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Are these prominent investors in the wrong for dumping Apple’s stock in such a dramatic fashion, or do they have some important insight as to where the share price is heading? Following that question, we have assembled a list of tech companies who have experienced trends of institutional selling in the current quarter, meaning professional investors are betting against their stock. We list the top 20 sold by percent of share float. List sorted by % of share float.
1. Advanced Micro Devices, Inc. ( AMD): Operates as a semiconductor company in the United States, Japan, China, and Europe. Market cap at $1.8B, most recent closing price at $2.53. Net institutional sales in the current quarter at -120.1M shares, which represents about 23.07% of the company's float of 520.59M shares.
2. Cymer Inc. ( CYMI): Engages in the development, manufacture, and marketing of excimer light sources for the manufacturers of photolithography tools in the semiconductor equipment industry. Market cap at $3.05B, most recent closing price at $97.04. Net institutional sales in the current quarter at -3.9M shares, which represents about 14.49% of the company's float of 26.92M shares.