In this article we will be looking 20 large-cap stocks from which insiders and short sellers are pulling their investments.
Uncertainty is around every corner of the U.S. stock market, affecting investors’ decisions. With President Trump’s return to the Oval Office, the market, heavily influenced by his policies, is flashing unmistakable warning signs. Short sellers and insiders are making an aggressive exit from multiple large-cap stocks. These groups are more plugged into market sentiment than the average investor, so their abandonment of stock must be looked into more closely.
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According to a CNBC report, the market indices are on track to log their worst performance in the first 100 days of a presidency since Richard Nixon’s second term as U.S. President. Meanwhile, internal selloffs are experiencing an upward trend in the market alongside bearish bets. Every day, investors wonder whether to stay put or jump overboard.
Concerning the current market situation, Cleveland Fed President Beth Hammack pointed out in a recent interview that businesses are growing increasingly wary. Because of tariff concerns and policy instability, they are holding back on investments and hiring. Such hesitation is reflected in insider behavior.
Insiders, including corporate executives, board members, and major shareholders, must report their trades. In addition, in their recent filings, a troubling pattern is noticeable: they are selling more and buying less. The livelihoods and wealth of insiders are often tied directly to the company’s performance. Hence, selling shares instead of purchasing them could be seen as their way of locking in gains before tough times hit their company.
Parallel to this pattern, short sellers are also ramping up their activity. They are betting on a wave of economic uncertainty pushing down share prices. These are not moves made on a whim but stemming from a more profound structural concern regarding an organization.
Due to the current environment, the Treasury yields are climbing, and the U.S. dollar is weakening. Consequently, the prices of stocks, even the large market caps, are swinging wildly. The Federal Reserve is expected to hold interest rates steady in May and cut them later in June. Though this may seem advantageous, corporate earnings may still be pressured by higher costs and lower consumer demand, resulting in a negative outlook for equities, particularly the overvalued ones. And with their recent activities, insiders and short sellers are positioning themselves to use the opportunities to exit rather than re-enter.
According to analysts, it is not about pulling your investments by following the insiders and short sellers. Instead, it’s about understanding what is going on in the market and using the knowledge to make informed decisions about your portfolio. Historically, the exit of those closest to the financials and forecasts often precedes market corrections. By paying attention to these movements, investors can elevate the resilience of their stocks as well.
With this understanding, let’s dive into our list of 20 large-cap stocks insiders and short sellers are dumping like crazy. Stay with us as we unveil the top 5, as they might already be part of your portfolio.
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Our Methodology
We followed multiple criteria when compiling our list of the top 20 large-cap stocks being dumped by insiders and short sellers. We selected the large-cap stocks based on their market cap and stock volume. Only the companies with a market cap between $10 billion and $200 billion were included in this list since anything more would be mega-cap, and anything less is regarded as small-cap or mid-cap. Concerning stock volume, we have disregarded companies with a volume of less than 500,000. We have set the short-float limit as 5% or more to ensure that our list is made up of picks involving high bearish bets. We have included those stocks with a negative insider transaction in terms of insider selling since this signals a negative outlook for the company’s future performance. The stocks are ranked according to their short percentage of float. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 30, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
20. Chewy, Inc. (NYSE:CHWY)
Short Float: 6.58%
Insider Transaction: -11.61%
Chewy, Inc. (NYSE:CHWY), located in Florida, is a leading e-commerce platform focused on pet food and related products. The company competes with Amazon and Petco by offering customer-centric services, auto-ship subscriptions, and a broad private-label portfolio. Chewy, Inc. (NYSE:CHWY) achieves rapid fulfillment and scalability through its vertically integrated distribution network. The company’s data-based personalization strategies, alongside expanding healthcare offerings, place it in the process of becoming a comprehensive pet wellness provider, thus increasing its customer retention rate.
The company’s sales have grown in recent quarters. However, in the Q4 of 2024, the gross margin expansion was still below expectations. Chewy, Inc. (NYSE:CHWY) also finds it challenging to sustain active customer growth despite the normalization in the pet industry. Price inflation is looming around the corner in 2025, and it could potentially impact revenue growth. At the very least, inflation is expected to offset customer acquisition, leading to flat growth in revenue. The heavy investments in initiatives like Chewy Vet Care Clinics could generate earnings, but only in the long run, thus resulting in a negative outlook in the current market.
For Chewy, Inc. (NYSE:CHWY), a notable 6.58% of shares are being shorted, indicating significant skepticism from investors. The company has a bearish outlook, as indicated by insider transactions, which show significant net selling of 11.61%. This suggests that even those with the closest view of the company’s prospects are reducing their holdings. Such negative insider transactions alongside high short interest warrant investor caution. It is among the stocks that insiders and short sellers are dumping.
19. Hewlett Packard Enterprise Company (NYSE:HPE)
Short Float: 6.60%
Insider Transaction: -9.80%
Based in Texas, Hewlett Packard Enterprise Company (NYSE:HPE) offers edge-to-cloud solutions, including servers, storage, networking, and IT services. Dell Technologies and Cisco pose tough competition for the company. However, by emphasizing hybrid cloud infrastructure and AI-driven analytics, the company stands apart. Its GreenLake cloud platform has a unique ownership structure whereby users can purchase, subscribe, or pay-per-use for the solution, thus enabling predictable revenue streams for the company. The company has also integrated Aruba Networks and advanced intelligent edge computing to capture value in distributed enterprise environments.
Hewlett Packard Enterprise Company (NYSE:HPE) was supposed to have acquired Juniper Networks. Still, the legal challenges from the Department of Justice are delaying the process and even questioning its completion. As a result, the synergies from the deal, which initially attracted market interest, could be lost. Additionally, as part of its cost-cutting measures, the company plans to terminate approximately 2500 positions in the 12 to 18 months. Further adding to the negative outlook is the anticipation of tariff impacts on the server business and the company’s overall profitability. HPE is one of the stocks that insiders and short sellers are dumping.
Hewlett Packard Enterprise Company (NYSE:HPE)’s short float of 6.60% reflects traders’ growing concerns regarding the company’s performance. Insider selling stands at 9.80%. The decline represents a lack of confidence from company executives. As institutional and internal players step back, a strong signal of potential downside risks emerges.
18. Tractor Supply Company (NASDAQ:TSCO)
Short Float: 6.61%
Insider Transaction: -7.73%
Headquartered in Tennessee, Tractor Supply Company (NASDAQ:TSCO) is the largest U.S. retailer of rural lifestyle products. The company primarily caters to recreational farmers and ranchers. Its extensive assortment includes agricultural supplies, pet care, hardware, and outdoor gear. Tractor Supply Company (NASDAQ:TSCO) leverages private brands, loyalty programs, and rural market penetration to overcome the competition in the market. The company’s “Life Out Here” branding strategy and increasing number of stores ensure a sustained competitive advantage in the rural lifestyle retail market.
The new tariffs are hurting the company’s prices. In the first quarter report of 2025, Tractor Supply Company (NASDAQ:TSCO) claimed that the increased costs due to tariffs are affecting the manufacturing partners and the company. With TSCO already experiencing a slowdown in its comparable store sales growth, the macroeconomic headwinds expected for 2025, such as reduced consumer spending owing to rising prices on goods, could cause further decline, resulting in a loss of profit. The lawsuit against the company by the Equal Employment Opportunity Commission (EEOC) for disability discrimination and retaliation, and the subsequent agreement to pay $75000, put the company in a bad spot among investors, which makes it one of the stocks insiders and short sellers are dumping.
Short sellers are showing significant interest in Tractor Supply Company (NASDAQ:TSCO), with 6.61% of its float under pressure. Insiders have reduced their exposure by 7.73%, revealing a decline in confidence in the firm’s potential in the upcoming year. This confluence of external and internal skepticism is a warning flag for potential investors.
