Investing

6 Stocks Will See Massive Buying and Selling on S&P Quarterly Rebalance

Lee Jackson

All indexes rebalance on a quarterly basis, as price movement constantly upsets the actual percentage that is supposed to be allocated. With the S&P 500 being the most influential index in terms of what is used by many portfolio managers as a benchmark, the quarterly rebalancing that will happen this Friday often means portfolio rebalancing. This is especially so if managers shadow the index to construct their portfolio. Shares will also be rebalanced in the S&P 400 and 600.

A new report from the Quantitative Strategies team at Jefferies says that the biggest selling action will be in the industrial sector, and the biggest buying in health care. We screened the Jefferies report for the stocks that will see the most trading on Friday.

Deere & Co. (NYSE: DE) will see some significant selling on Friday. The maker of farming and tractor gear will see an estimated 1.83 million shares hit the sell tape. That will represent a total of a $164 million. The stock closed Monday at $89.14. Investors might still pay attention that the consensus analyst price target is lower at $86.37.

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Ford Motor Co. (NYSE: F) remains a favorite stock to buy on Wall Street and will see a big buy order on Friday. The Jefferies analysts estimate that 13.06 million shares of the iconic automaker will be bought, at a total value of $211 million. The stock closed Monday at $16.49. Ford’s consensus analyst price target is currently $16.82.

Intel Corp. (NASDAQ: INTC) recently lowered estimates for the first quarter and has already seen substantial selling. The stock will see more on Friday as an estimated 8.2 million shares of the chip giant will be sold for a total dollar amount of $254 million. The stock closed Monday at $30.83, and the consensus analyst price target is $34.70 — under the 52-week high of $37.90.

Pfizer Inc. (NYSE: PFE) is listed as one of the most popular health care stocks among hedge funds. That notwithstanding, the stock will see a huge sell Friday of 15.25 million shares, for a total dollar amount of an estimated $518 million. Pfizer shares closed trading on Monday at $34.44. Pfizer’s consensus analyst target is $36.28.

United Technologies Corp. (NYSE: UTX) is a top industrial stock that will also see significant selling Friday. An anticipated 1.88 million shares of the stock will be on the sell desk, worth an estimated $223 million. Shares closed Monday at $120.07, and the consensus price target is up at $132.25.

Actavis PLC (NYSE: ACT) is a top generic drug maker and will see monster buying on the close Friday. The Jefferies team estimates 1.78 million shares will be bought on the close, totaling $531 million. The stock closed Monday at $305.

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Investors looking to buy or sell any of these stocks may want to keep in mind the coming rebalance. While the numbers are big, most of these are large cap stocks with excellent liquidity and should hold up fine.