20 Large-Cap Stocks Insiders and Short Sellers Are Dumping Like Crazy

13. Core & Main, Inc. (NYSE:CNM)

Short Float: 7.77%

Insider Transaction: -63.43%

Missouri-based company Core & Main, Inc. (NYSE:CNM) is a leading distributor of water, wastewater, storm drainage, and fire protection products in the U.S. Supporting essential infrastructure projects, the company’s customer base comprises municipalities, private utilities, and contractors. Though the market is filled with tough competitors like Ferguson and Winsupply, Core & Main, Inc. (NYSE:CNM) distinguishes itself through product breadth and technical expertise. The increasing infrastructure investment supports organic growth, while strategic acquisition helps with market expansion.

Despite sales growth in Q4 2024, the company’s gross margin declined because of the higher average inventory cost. The interest expense has also increased from $81 million to $142 million during the period due to higher average borrowings. In addition to inflation, Core & Main, Inc. (NYSE:CNM)’s acquisition model has led to a rise in SG&A expenses of 21%. With these cost increases alongside an anticipated potential headwind from pricing, Core & Main, Inc. (NYSE:CNM) prepares for a neutral pricing environment in 2025.

CNM exhibits a 7.77% short float, suggesting that bearish investors are aggressively targeting the company. Subsequently, an insider transaction rate of 63.43% expresses a massive retreat by those within the firm and raises significant skepticism regarding the company’s future growth potential.