From CBS MarketWatch:

Institutional investors are crucial for stock moves due to large sums of money to invest. Their extensive research teams, top-of-the-line software, and access to more information give them an upper hand. On their disadvantages, though, they lack flexibility and are often over-diversified.

Three stocks experiencing institutional accumulation are Palantir, Carvana, and MercadoLibre. The institutional accumulation results in substantial stock movements, making the activities of these investors a significant factor to track.

Palantir, the data analytics company, experienced a blowout earnings result. The stock exploded by over 30% with an all-time high volume of 420 million shares – a signature of institutional accumulation strategies.

Recovering from last year’s plummet, Carvana’s share price has skyrocketed. Once trading near $4 per share, it now nears $48. Institutional accumulation accounted for a multi-week retreat, and Tuesday, the stock regained its 50-day moving average.

MercadoLibre had a 180% year-over-year increase in quarterly earnings. The soaring demand for its services has placed this Latin American e-commerce giant over Amazon’s online retail share for the first time.

Paying attention to institutional accumulation in the stock market is critical. Institutions drive significant stock movements, and understanding their buy and sell activities can offer retail investors a distinct advantage.



Read more: Harnessing Institutional Volume Accumulation (3 Stocks to Watch Now)