Investing

Huge Index Rebalance Means Massive Buy Orders for 4 Top Stocks

On the close Friday, 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 Friday.

In a research note from the analysts at Cowen, they have calculated the buys and sell in the index based on the holdings in the SPDR S&P Dividend or ETF (NYSE: SDY), which essentially mirrors the index and will rebalance. The Cowen analysts estimate there are numerous stocks in the rebalancing that will trade as much as over 300% of the 10-day average trading volume. We screened the list for the four stocks that could see the highest amount of share count buying, and had the highest percentage of volume increase over the 10-day average.

Questar Corp. (NYSE: STR) will see a gigantic buy order hit the tape on Friday at the close. Cowen estimates that a massive 3,336,200 shares of the stock will be bought. That represents a gigantic 367% increase over the 10-day average trading volume. 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 serving 975,200 sales and transportation customers. The stock closed Monday at $20.83.

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HB Fuller Co. (NYSE: FUL) also will see a dramatic shift in volume and share buying on Friday. The analysts estimate that a whopping 669,700 shares of the stocks will be bought on the close Friday. That represents an incredible 332% increase over the average 10-day trading volume. The company formulates, manufactures and markets adhesives, sealants and other specialty chemical products worldwide. The company operates through four segments: Americas Adhesives; Europe, India, Middle East, and Africa; Asia Pacific; and Construction Products. The stock closed Monday at $37.71.

United Bancshares Inc. (NASDAQ: UBSI) is a top financial stock that will see a ton of share buying Friday. The Cowen estimate is that 772,200 shares of the stock will hit the buy tape on Friday. That represents a monster 303% increase in the 10-day average trading volume. The company operates as the bank holding company for United Bank (West Virginia) and United Bank (Virginia) that provides commercial and retail banking services and products in the United States. The stock closed Monday at $39.50.

Black Hills Corp. (NYSE: BKH) rounds out the top four stocks that will see incredible buying volume on Friday. The analysts estimate that a total 406,400 share will be bought on the close. That will represent a huge 225% increase over the 10-day average volume. The company operates as a diversified energy company in the United States. The company’s Electric Utilities segment generates, transmits, and distributes electricity to approximately 205,400 electric customers in South Dakota, Wyoming, Colorado and Montana; and distributes natural gas to approximately 36,000 gas utility customers in Cheyenne, Wyo. The stock closed Monday at $45.65.

We like to remind our readers that these trades are hardly a well-kept secret and many managers that shadow the index are already putting on trades in front of the action on Friday. However, if you are looking to buy or sell these companies, the added liquidity on Friday’s close could be helpful.

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