Investing

Huge Dividend Index Rebalance Means Massive Buy Orders for 5 Stocks

On the close Thursday, the S&P High Yield Dividend Aristocrats Index is set for a rebalance. What this means is the index will be rebalanced to reflect reweighting allocations across the stocks that make up the index. It also means there will be some serious buying and selling on the last print Thursday.

In a research note, the analysts at Cowen have calculated the buys and sells in the index based on the holdings in the SPDR S&P Dividend ETF, which essentially mirrors the index and will also rebalance. The Cowen analysts estimate there are 20 stocks rebalancing with greater than 50% of 10 day average volume. We screened the list for the five stocks that could see the highest amount of share count buying and that had the highest percentage of volume increase over the 10-day average.

United Bancshares Inc. (NASDAQ: UBSI) is estimated to see a gigantic buy program hit on the close Thursday. The Cowen team estimates that a massive 1,340,600 shares of the stock will be purchased on Thursday’s close. This will represent an incredible 547% increase of shares over the 10-day volume average. United Bancshares operates as the bank holding company for United Bank (WV) and United Bank (VA) and provides commercial and retail banking services and products in the United States. The stock closed Friday at $37.64.

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Mercury General Corp. (NYSE: MCY) will be super active on the close Thursday. The analysts expect a buy of 897,000 shares of stocks to hit the tape, and that represents a monster increase in volume of 451% over the 10-day average. Mercury General, together with its subsidiaries, writes personal automobile insurance. The company also writes homeowners, commercial automobile, commercial property, mechanical breakdown, fire and umbrella insurance. The stock closed Friday at $58.30.

Vectren Corp. (NYSE: VVC) is a top utility stock that will see far more trading than usual, and a buy order of an estimated 860,000 shares of the stock will hit on the close Thursday. That represents a 257% increase over the normal 10-day volume average. Vectren provides energy delivery services to residential, commercial and industrial and other contract customers. The company offers natural gas distribution and transportation services, as well as electric transmission and distribution services. The shares closed Friday at $44.89.

Questar Corp. (NYSE: STR) is another top utility that will see far more action on Thursday than usual. The analysts estimate a huge order of 835,800 shares will be bought, which will represent a huge 132% increase over the normal 10-day trading average. The company operates as an integrated natural gas company in the United States. It distributes natural gas as a public utility in Utah, southwestern Wyoming and a small portion of southeastern Idaho. The shares closed the day Friday at $24.19.

Tanger Factory Outlet Centers Inc. (NYSE: SKT) is a well-known real estate investment trust (REIT) that will see a high volume count of shares bought on Thursday’s close. The analysts estimate that an order for 715,800 shares will hit the tape, and that represent a large 97% increase over the normal 10-day average. The firm invests in the real estate markets in United States. It focuses on developing, acquiring, owning, operating and managing outlet shopping centers. Shares ended the day Friday at $34.32.

While it is no secret that these purchases will be made, it certainly will put a floor under these stocks. It also give sellers a chance to have market-on-close sell orders in to match up with all the buying.

ALSO READ: 8 Analyst Stock Picks Under $10 With Massive Upside Targets

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