This paper documents how the interaction between the presence of short-term institutions and analyst recommendations is associated with a speculative component in stock prices that results in temporary mispricing with predictable and large price reversals. In particular, stocks held by short-term investors with optimistic (pessimistic) analyst recommendations have large past out(under)-performance, followed by large negative (positive) future alphas. Our results are robust to using Russell 2000 index reconstitutions to capture exogenous changes in institutional ownership, short-term trading, and analyst coverage.