In this article, we will take a detailed look at 10 Mid–Cap Stocks Insiders Are Selling Recently. We previously covered 10 Mid-Cap Stocks Insiders Are Buying Recently.
Why should investors analyze insider trading activity? Insiders, or people in high positions within a company—such as executives and directors—can have crucial insights into the company’s strategic moves, plans, and initiatives. When, for example, a CEO invests their own capital in company stocks, it can indicate strong confidence in the company’s future results.
What does it mean when insiders are selling their shares? It doesn’t necessarily mean bad news for the stock. Sometimes, large shareholders just want to trim their holdings to more appropriate position sizes based on the risk/reward potential.
It is important to note that both insider selling and buying can be driven by various motives. Therefore, any insider trading activity should be analyzed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. Many insider purchases don’t necessarily mean the company will be successful. That’s why due diligence before any investment is of the utmost importance. Investors should also take into account and carefully analyze underlying reasons for insider transactions. However, insider trading activity in combination with other relevant factors can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
To identify the 10 mid-cap stocks insiders are selling recently, we considered only stocks with a market capitalization of between $2 billion and $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders buying over the last two months.
With each stock we note the number of recent insider sales and the company’s current market capitalization. But why is it important to follow insider activity? Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
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10. C3.ai, Inc. (NYSE:AI)
Number of Insiders Selling: 8
Market Capitalization: $4.343B
C3.ai, Inc. is an Enterprise AI software provider focused on accelerating digital transformation. It offers services to build enterprise-scale AI applications, and its C3 AI Platform supports the value chain in any industry with AI applications for reliability, fraud detection, sensor network health, and customer and energy management. The company was founded in 2009 in California and went public in 2020. Since its initial public offering five years ago, C3.ai shares lost 72%.
In December and January, eight insiders, including the CEO and CFO, sold around $55.69 million worth of C3.ai shares at an average price of $37.28 per share. Out of the aggregate amount M Thomas Siebel, the company’s CEO, sold $22.88 million worth of shares at a price of around $31.73. The stock is currently trading at $33.48 per share, having lost 2.76% year-to-date. This way, Siebel reduced his ownership to $1.76 million worth of shares, as of January 15th.
For its fiscal second quarter ended October 31, 2024, the company reported total revenue of $94.3 million, an increase of 29% compared to $73.2 million one year ago. In December, C3.ai announced that in partnership with ECS, an IT systems integrator will work together to modernize information collection management processes for Army Intelligence.
Why are insiders selling C3.ai? Some analysts expressed concerns that the AI stock market bubble will burst in 2026, and therefore have downgraded their targeted market prices. In addition to market saturation, the AI industry faces potential regulatory challenges and geopolitical tensions.
On the other hand, a recent study from Cisco Systems Inc (NASDAQ:CSCO) revealed that 97% of CEOs plan to integrate AI into their operations, but only 1.7% feel fully prepared. They worry that their lack of AI understanding could negatively affect important decision-making in the boardroom. This might signal that once CEOs get more familiar with AI, the demand will grow again. According to data from Stock Analysts, 13 analysts have “Hold” as the average rating for AI stock, and the 12-month targeted price is $36.75 per share.
9. Alaska Air Group, Inc. (NYSE:ALK)
Number of Insiders Selling: 8
Market Capitalization: $9.161B
Through its subsidiaries, Alaska Air Group operates airlines working in three segments – Mainline, Regional and Horizon. The Seattle-based company recently acquired Hawaiian Airlines, which enabled the company to reach 140 destinations. Currently, it operates across North America, Central America, Asia, and the Pacific. Its subsidiaries include Alaska Airlines, Hawaiian Holdings, Inc., Horizon Air and McGee Air Services.
In December and January, eight insiders, including the President and CEO, sold around $12.17 million worth of Alaska Air Group shares at a price of approximately $64.86 per share. The stock is currently trading at $75.92 per share, having gained 17.25% since the beginning of the year.
According to the data from TipRanks, 12 Wall Street analysts hold a “Buy” rating on the stock, with the average price target set to $87.25 per share.
Mad Money host, Jim Cramer, recently commented, “While I like Delta, United, and Alaska Airlines, ways to play travel, there’s still some laggard, haggard companies out there that can act like skunks at a profits party.”
Alaska Air Group recently posted financial results for the fourth quarter and full year 2024, beating expectations on both revenue and earnings per share. For the full year net income reached $625 million or $4.87 per share, which compares to net income of $583 million, or $4.53 per share in 2023. Additionally, the company reported record full year revenue of $11.7 billion, and then in January it announced it is rewarding employees with an extra six weeks of pay for remarkable performance in a pivotal year.
Over the past 12 months, Alaska Air Group shares gained 103.38%.
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