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.
Source: pexels
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.
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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.
17. Exelixis, Inc. (NASDAQ:EXEL)
Short Float: 6.85%
Insider Transaction: -6.25%
Exelixis, Inc. (NASDAQ:EXEL) is a biotechnology company specializing in oncology therapeutics. Operating from its headquarters in California, the company is best known for its flagship drug, Cabometyx, used in renal cells and hepatocellular carcinoma. The company competes against Bristol Myers Squibb and Pfizer in targeted cancer treatment with this drug. Exelixis, Inc. (NASDAQ:EXEL) emphasizes internal discovery and external partnerships to accelerate pipeline development. Additionally, the company’s focus on antibody-drug conjugates and next-generation small molecules reflects a long-term value creation in precision oncology.
Exelixis, Inc. (NASDAQ:EXEL) finished the last quarter of 2024 with a 20% year-over-year growth in its U.S. cabo franchise. However, owing to increased co-pay assistance and Medicare Part D expenses, the company faces challenges in turning revenue into net income. Exelixis, Inc. (NASDAQ:EXEL) has also fallen behind in its clinical trials, which is expected to affect future earnings. Specifically, the development of zanzalintinib is compared to existing treatments like cabozantinib, thus putting competitive pressure on the company. For 2025, the company has planned to invest approximately $1 billion in R&D. However, with sequential delays in other products, skepticism prevails regarding the new R&D’s potential to generate earnings.
Around 6.85% of the company’s shares have been shorted, reflecting notable scrutiny by bearish traders. The insider transaction figure stands negative at 6.25%, indicating waning confidence among the company’s leadership circles. This negative sentiment from the market and the insiders signals a cooling outlook for Exelixis, Inc. (NASDAQ:EXEL).
16. ON Semiconductor Corporation (NASDAQ:ON)
Short Float: 6.98%
Insider Transaction: -2.06%
ON Semiconductor Corporation (NASDAQ:ON), headquartered in Arizona, is a designer and manufacturer of intelligent power and sensing technologies. With a strategic focus on automotive, industrial, and cloud power markets, the company competes with leading competitors like Infineon and Texas Instruments. The company’s silicon carbide (SiC) and image sensor portfolios support critical applications in electric vehicles, renewable energy, and factory automation, offering differentiation in the market. ON Semiconductor Corporation (NASDAQ:ON) aims to meet the accelerating global demand for electrification by investing in capacity expansion.
The Q4 report of the company indicates a consistent decline in regional revenue. Specifically, the Japanese market has incurred a significant fall in revenue. Because of geo-political uncertainty and slower-than-expected growth in the electric vehicle segment, the company anticipates volatility in the automotive sector, which will harm the company’s earnings. For 2025, ON Semiconductor Corporation (NASDAQ:ON) anticipates a revenue decline of 25%, thus driving away even the insiders from the stock. It is among the stocks that insiders and short sellers are dumping.
ON Semiconductor Corporation (NASDAQ:ON)’s short float of 6.98% places the company in the interest of speculators betting against its upside. Simultaneously, the insider activity shows a 2.06% net reduction. Though modest, the figure is a noteworthy pullback among executives. Additionally, the sustained short interest casts a shadow over investor sentiment.
15. Sprouts Farmers Market, Inc. (NASDAQ:SFM)
Short Float: 7.29%
Insider Transaction: -28.87%
Based in Arizona, Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a specialty grocery retailer focused on fresh, natural, and organic products. The company operates over 400 stores across the U.S. and targets health-conscious consumers by highlighting produce, vitamins, and private-label items. Against tough competitors like Whole Foods, the company acquires market share through smaller store formats and affordability. Sprouts Farmers Market, Inc. (NASDAQ:SFM) sources materials locally and engages in omnichannel expansion to support its growth in the premium grocery segment.
From the latter part of 2024 onwards, the company has faced uncertainty due to supply constraints and tariff impacts on imported goods. In addition to directly affecting the cost of goods, these factors have the potential to cause a fall in consumer spending, which affects sales. Sprouts Farmers Market, Inc. (NASDAQ:SFM) reported strong growth in the fourth quarter of 2024, but has not achieved its long-term target of 10% store growth. Exiting the leases and the subsequent closure of a few stores have cost the company $4 million in the last quarter, further reducing the net earnings and strengthening the negative perception of the stock.
A short float of 7.29% implies a significant degree of investor pessimism surrounding the company’s current market positioning. Sprouts Farmers Market, Inc. (NASDAQ:SFM) is experiencing one of its steepest sell-offs among insiders, with insider transactions increased by 28.87%, representing falling confidence in future growth prospects.
14. Apollo Global Management, Inc. (NYSE:APO)
Short Float: 7.52%
Insider Transaction: -1.48%
A global alternative asset manager and private equity firm, Apollo Global Management, Inc. (NYSE:APO) is located in New York and manages over $600 billion in assets across credit, private equity, and real assets. The company is known for its focus on value-oriented investments and its capital solutions platform, which is managed through Athene, an insurance subsidiary. Apollo Global Management, Inc. (NYSE:APO) generates consistent risk-adjusted returns across economic cycles and asset classes through diversified strategies.
As per the fourth quarter report, the fee-related earnings have increased 17% year-over-year. However, 90% of Apollo Global Management, Inc. (NYSE:APO)’s partners acknowledge internal challenges in successfully executing the 5-year plan. For instance, Athene’s funding cost has increased and could potentially affect the company’s earnings. Additionally, the increased competition in the retirement market could reduce the company’s anticipated growth in the segment. Regulatory uncertainties loom over the insurance and retirement sectors, further dampening the company’s growth prospects. It is among the stocks that insiders and short sellers are dumping.
Apollo Global Management, Inc. (NYSE:APO) faces a short float of 7.52%, representing a cautious sentiment among market participants. Meanwhile, their insider selling is at 1.48% but continues, suggesting limited insider conviction. Together, these numbers reflect rising concerns about the company’s exposure to market volatility.
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.
12. Tapestry, Inc. (NYSE:TPR)
Short Float: 8.08%
Insider Transaction: -19.45%
Tapestry, Inc. (NYSE:TPR) is a global house of fashion brands, including Coach, Kate Spade, and Stuart Weitzman. Headquartered in New York, the company designs, markets, and retails luxury accessories and lifestyle products across North America, Asia, and Europe. The company drives customer engagement by focusing on digital transformation, consumer analytics, and brand storytelling, accumulating market shares against tough players. The company’s multi-brand strategy allows it to expand its margin and diversify its revenue in the accessible luxury market.
Tapestry, Inc. (NYSE:TPR) has terminated the merger agreement with Capri Holdings Limited and has accumulated a debt of $120 million in the process of this extinguishment. Though the company is financially sound, the termination of the merger and the subsequent debt expenses create uncertainty among investors. The cash flow from operating activities has also declined from $902 million to $626 million, thus raising a red flag for insiders. Additionally, the inventory levels have gone up to $937 million from $825 million in the second quarter of 2025, causing concerns regarding the company’s sales potential, which makes it one of the stocks that insiders and short sellers are dumping.
Tapestry, Inc. (NYSE:TPR)’s 8.08% short float raises doubts over the company’s resilience in the discretionary retail segment. Combining it with a 19.45% decline in insider holdings reveals mounting pressure on the brand to justify its valuation amid the macroeconomic and sector-specific headwinds.
11. Seagate Technology Holdings plc (NASDAQ:STX)
Short Float: 8.17%
Insider Transaction: -12.35%
A leader in data storage solutions, Seagate Technology Holdings plc (NASDAQ:STX) manufactures hard disk drives (HDDs), solid-state drives (SSDs), and storage systems. The Ireland-based company serves global data centers, enterprise clients, and consumer markets and competes with Western Digital, Micron Technology, and Toshiba. Seagate Technology Holdings plc (NASDAQ:STX) prioritizes innovation in high-capacity storage, cloud infrastructure, and edge computing to gain its competitive advantage. The company’s advanced manufacturing capabilities and investments in HAMR (Heat-Assisted Magnetic Recording) technology give it a strong foothold in the market for data storage solutions.
Though Seagate Technology Holdings plc (NASDAQ:STX)’s revenue for the third quarter of 2025 has reached a 31% year-on-year increase, the sequential growth shows a 7% decline owing to temporary supply constraints arising from geopolitical tensions. Proportionately, the mass capacity shipments were also down, but by 5%. Seagate Technology Holdings plc (NASDAQ:STX) continues struggling to manage the operational issues that previously affected its performance. For the fourth quarter, the company anticipates a negative performance that closely follows the customer buying decisions, which is expected to be impacted by potential tariffs and Fed rate cuts.
With 8.17% shares shorted, Seagate Technology Holdings plc (NASDAQ:STX) faces substantial scrutiny from short sellers and raises skepticism among the overall market. Additionally, the insiders’ selling increase of 12.35% in the past 6 months of their holdings adds value to the negative outlook regarding the company’s performance against market setbacks.
10. Astera Labs, Inc. (NASDAQ:ALAB)
Short Float: 8.36%
Insider Transaction: -8.36%
Located in California, the semiconductor connectivity solutions provider Astera Labs, Inc. (NASDAQ:ALAB) specializes in intelligent data and memory connectivity for cloud and AI infrastructure. The company enables optimized performance for data-intensive applications by developing system-aware ASICs and IP for high-speed interconnects. Astera Labs, Inc. (NASDAQ:ALAB) leverages close collaboration with hyperscalers and OEMs to deliver customized solutions, achieving a competitive edge over its market peers. The company’s operations are aligned with an AI-based workload, which boosts its capabilities in the evolving cloud ecosystem. ALAB is among the stocks that insiders and short sellers are dumping.
Astera Labs, Inc. (NASDAQ:ALAB) recorded a significant revenue increase of 179% year-over-year in the fourth quarter of 2024. However, the product mix shift towards hardware-based solutions has led to a decline in non-GAAP gross margins to 74.1%. In Q1 of 2025, the company anticipates a growth in operating expenses resulting from R&D expansion. Since the company is heavily dependent on a small number of hyperscalers, it may also be potentially exposed to customer concentration risk. Furthermore, the new tariffs on Taiwanese imports could increase production costs, which would reduce the appeal of stocks to investors.
Despite its recent public debut, Astera Labs, Inc. (NASDAQ:ALAB)’s 8.36% short float reflects significant investor unease. Similarly, insider selling suggests equal hesitancy among internal stakeholders. Warranting caution, the company ranks among our large caps dumped by insiders and short sellers.
9. Insmed Incorporated (NASDAQ:INSM)
Short Float: 8.51%
Insider Transaction: -15.14%
Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical firm located in New Jersey. The company focuses on developing therapies for serious and rare diseases, including respiratory and inflammatory conditions. Its flagship product, Arikayce, targets treatment-refractory Mycobacterium avium complex lung disease. The company competes with market players like Horizon and Vertex Pharmaceuticals through targeted innovation and global regulatory expansion. It has consistently invested in novel therapeutics, thus enhancing the treatment paradigms across multiple underserved medical domains.
Insmed Incorporated (NASDAQ:INSM) has been expecting revenue from brensocatib but has rescheduled it to the third quarter of 2025 because of approval delays. The outflow of cash in 2024 stands at $191 million in Q4, including the investments made towards brensocatib. This cash burn is higher than any of the previous quarters, and hence, concerns have started to rise regarding the company’s financial stability. Additionally, Insmed Incorporated (NASDAQ:INSM) may require future financing since it uses its net income for funding and must continue investing in its pipeline.
Insmed Incorporated (NASDAQ:INSM) has a short float of 8.51%, putting the company under consistent pressure from bearish positions. Additionally, the steep 15.14% drop in insider ownership raises red flags about confidence in the company’s long-term pipeline and, thus, turning it into a large-cap stock abandoned by insiders and short sellers.
8. Rubrik, Inc. (NYSE:RBRK)
Short Float: 8.62%
Insider Transaction: -2.29%
Rubrik, Inc. (NYSE:RBRK), headquartered in California, is a cybersecurity and data management company specializing in offering zero-trust data security solutions for enterprises. The company integrates backup, disaster recovery, and ransomware detection into a single cloud-native platform. Despite the large number of competitors, the company thrived in the market by targeting hybrid and multi-cloud environments and focusing on cyber resilience and regulatory compliance. The company leverages machine learning and real-time analytics to differentiate its platform and support mission-critical workloads.
Rubrik, Inc. (NYSE:RBRK) had strong revenue growth in its most recent quarter, but continues to report its non-GAAP EPS in negative value for the fiscal year 2026. The company anticipates moderation in cash flow for 2026, which represents difficulties in maintaining the current growth pace. The company’s Annapurna platform, which promises customers secure access, mobilization, and governance of data on Google Cloud, is still in its infant stage and, hence, may take some time before it can generate potential earnings for the company.
With 8.62% of its float being sold short, Rubrik, Inc. (NYSE:RBRK) faces strong contrarian sentiment among traders. There is some level of retained conviction among leadership as reflected in the insider selling, which remains relatively limited at 2.29%. However, the elevated short interest calls attention to valuation risks before investing in the stock.
7. Western Digital Corporation (NASDAQ:WDC)
Short Float: 8.84%
Insider Transaction: -3.36%
Based in California, Western Digital Corporation (NASDAQ:WDC) is a global leader in digital storage solutions, including HDDs, SSDs, and flash memory products. The company’s customer base ranges from individual consumers to enterprise and OEM markets. Operating under brands like Western Digital and SanDisk, Western Digital Corporation (NASDAQ:WDC) competes with other leaders in the industry, including Seagate and Samsung. Vertical integration and NAND technology partnerships offer the company a competitive edge. Meanwhile, the rising data demand across AI, edge computing, and mobile applications makes the company a contender in next-generation storage architectures.
Though the year-on-year growth of its revenue stands strong, the company has experienced a 5% sequential decline in its third-quarter revenue for 2025. The consumer segment, client segment, and cloud segment each fell by 13%, 2%, and 4%, respectively, marking a significant fall in the company’s overall performance. On February 21, 2025, Western Digital Corporation (NASDAQ:WDC) completed the separation of the Flash business unit (Sandisk), which has introduced a transition period and potential instability. Additionally, external factors, including the current global economic and geopolitical uncertainty and shifting trade dynamics, continue to influence the company’s business operations.
Western Digital Corporation (NASDAQ:WDC)’s short float sits at 8.84%, reflecting a heightened bearish interest in the data storage sector. Though insiders have reduced their positions by just 3.36%, it is still a notable withdrawal. Continued pressure from insiders and short sellers indicates consistent skepticism over the company’s recovery.
6. CAVA Group, Inc. (NASDAQ:CAVA)
Short Float: 9.14%
Insider Transaction: -37.09%
CAVA Group, Inc. (NASDAQ:CAVA), headquartered in Washington, D.C., is a fast-casual restaurant chain specializing in Mediterranean-inspired cuisine. The company has a vertically integrated model. Using the model, it combines its proprietary food production with scalable restaurant operations across the U.S. CAVA Group, Inc. (NASDAQ:CAVA) leverages digital ordering and health-focused offerings to attract millennial and Gen Z consumers. The company’s 2023 IPO capitalized on health-conscious dining trends, marking it a high-growth player in the fast-casual market environment.
The company saw a 36.8% year-over-year growth in revenue. However, food, beverage, and packaging costs have increased during the fourth quarter of 2024, owing to the national rollout of stake, which affects the company’s profit margin. Though labor and related costs decreased, it did not offset the menu price increases. CAVA Group, Inc. (NASDAQ:CAVA) expects stock-based compensation to reach $20 million to $22 million in 2025. The resulting dilution and vested shares create a negative outlook for the company among investors.
The company’s short float of 9.14% shows a strong upward trend in pessimism among market speculators. This is followed by a striking 37.09% insider transaction rate in the past 6 months, which suggests aggressive selling from within the company. With external and internal players retreating, doubts are cast on CAVA Group, Inc. (NASDAQ:CAVA)’s long-term positioning in the food sector.
5. Aurora Innovation, Inc. (NASDAQ:AUR)
Short Float: 9.33%
Insider Transaction: -1.85%
Pennsylvania-based company Aurora Innovation, Inc. (NASDAQ:AUR) is a developer of autonomous driving technology with a special focus on freight and logistics. The Aurora Driver platform integrates AI and sensors to enable self-driving in trucks and passenger vehicles. Competing with other market players like Waymo, Aurora Innovation, Inc. (NASDAQ:AUR) emphasizes scalable deployment through partnerships with Volvo, PACCAR, and FedEx. The company aligns its operations with commercial transport automation trends and targets safety, efficiency, and long-term cost reduction in logistics to thrive in the market.
Aurora Innovation, Inc. (NASDAQ:AUR) expects a revenue generation delay from its autonomous trucking operations. As part of the delay, the revenue for 2025 is anticipated to be in the mid-single-digit millions. The petition for flashing lights on stopped trucks was rejected by FMCSA, which indicates regulatory challenges that affect the company’s operational efficiency. Though the transition to driverless operations has garnered some interest in the market, the company has reported that the scaling of these operations and its subsequent profit realization would not occur till 2026, thus reducing the company’s value in the short term.
Aurora Innovation, Inc. (NASDAQ:AUR) has generated skepticism from traders over its commercialization timeline, which is represented in the short float of 9.33%. Insider selling stands at 1.85%, which makes it one of the stocks that insiders and short sellers are dumping. Though the pullback is mild, the direction is negative, and hence, interested investors must thoroughly evaluate the company’s stock before proceeding with a Buy or Hold.
4. Strategy Incorporated (NASDAQ:MSTR)
Short Float: 11.67%
Insider Transaction: -1.14%
Strategy Incorporated (NASDAQ:MSTR) is an enterprise software company specializing in business intelligence (BI), cloud analytics, and, increasingly, Bitcoin acquisition. The company was formerly called Microstrategy Incorporated. Operating from Virginia, it is known for its integrated analytics platform. Strategy Incorporated (NASDAQ:MSTR) provides scalable data visualization and mobile intelligence tools and competes against competitors like Tableau and Qlik for market share. The company has been garnering attention for its aggressive cryptocurrency investment strategy, with significant Bitcoin holdings influencing its financial profile.
In its Q4 results, Strategy Incorporated (NASDAQ:MSTR) reported strong growth in its cloud platform, with subscription billings and subscription services revenue experiencing 50% and 48% year-over-year growth, respectively. However, the total software revenue has declined by 3% year-over-year. The report also points to a $1 billion digital asset impairment charge reflecting the risks and volatility associated with Bitcoin. Strategy Incorporated’s (NASDAQ:MSTR) growth strategy is exposed to risks from unrealized capital gains tax on crypto assets, giving the company a negative outlook.
With an 11.67% short float, Strategy Incorporated (NASDAQ:MSTR) is under heavy scrutiny, particularly owing to its substantial Bitcoin exposure. On the other hand, insider transactions remain low but negative at -1.14%. But despite the marginal insider selling, the market’s bearish bets raise concerns about the company’s crypto-leveraged balance sheet.
3. SoFi Technologies, Inc. (NASDAQ:SOFI)
Short Float: 13.58%
Insider Transaction: -57.50%
With headquarters in California, SoFi Technologies, Inc. (NASDAQ:SOFI) operates a digital personal finance platform and offers student loan refinancing, mortgages, banking services, and investment products. In addition to fintech companies like Robinhood and Chime, SoFi Technologies, Inc. (NASDAQ:SOFI) competes with traditional banks and achieves a competitive advantage through its integrated ecosystem and national banking charter. The company’s strategy prioritizes cross-selling, user growth, and technology-driven lending. Targeting millennial and Gen Z demographics, it capitalizes on the shift toward mobile-first financial services.
As per the Q1 2025 report, oFi Technologies, Inc. (NASDAQ:SOFI) has achieved a record revenue of $771 million. However, the macroeconomic uncertainties combined with the potentially volatile interest rates could impact the company’s future growth progress. The 6% decline in the tech platform segment suggests that the company finds it challenging to retain its client base or acquire new clients. SoFi Technologies, Inc. (NASDAQ:SOFI) has plans to enter new areas, including Crypto and Blockchain. These business segments carry regulatory challenges and could potentially expose the company’s growth to risks.
SoFi Technologies, Inc. (NASDAQ:SOFI)’s short float has surged to 13.58%, a sign of declining investor confidence. Proportionately, the company’s insiders’ sales have increased by 57.50% in the past 6 months. With such a high internal retreat alongside a short positioning, confidence in FinTech’s narrative is waning. Hence, it is among the stocks that insiders and short sellers are dumping.
2. Rocket Lab USA, Inc. (NASDAQ:RKLB)
Short Float: 15.96%
Insider Transaction: -6.64%
California-based company Rocket Lab USA, Inc. (NASDAQ:RKLB) is an aerospace manufacturer and launch service provider specializing in small satellite deployment. Its Electron rocket facilitates frequent, cost-effective missions. Similarly, its Neutron launch vehicle aims to serve larger payload markets. Facing domination from SpaceX and other competitors, Rocket Lab USA, Inc. (NASDAQ:RKLB) gains a competitive edge by integrating satellite components and space systems into its vertical strategy. Government and commercial contracts support its expansion in orbital logistics and defense, positioning it as a key player in the evolving space economy.
Rocket Lab USA, Inc. (NASDAQ:RKLB) reported a net loss of $52.3 million for the fourth quarter of 2024 and $190.2 million for the full year. Additionally, despite the record revenue, the company’s EBITDA saw a loss of $23.2 million in the fourth quarter and $96.9 million for the full year. Per the first quarter of 2025 guidance, the company expects an adjusted EBITDA loss of $33 million and $35 million. The negative outlook for the company elevated heavily after it was caught misleading investors about the likelihood that its Neutron rocket would launch in mid-2025 without disclosing the significant delays in barge landing tests and launch pad preparation.
Rocket Lab USA, Inc. (NASDAQ:RKLB) has a short float of 15.96%, placing it second on our list regarding the most targeted stocks by short sellers. The insider sales rate is around -6.64%, confirming the hesitancy from within. The insider wariness and external speculation create heaps of doubts regarding the company’s viability in the competitive market.
1. Reddit, Inc. (NYSE:RDDT)
Short Float: 18.18%
Insider Transaction: -6.21%
Reddit, Inc. (NYSE:RDDT) is a social media platform that organizes content around user-generated communities known as subreddits. The company combines anonymity with topic-specific engagement, supporting diverse discourse from finance to entertainment. The 2024 IPO marked a significant milestone for this California-based company in monetizing user engagement through ads and data licensing. X and Discord hold a significant market share and, therefore, dominate Reddit, Inc. (NYSE:RDDT). However, the company’s strength lies in deep user interaction and niche communities, where advertisers could use the platform for targeted, organic reach.
The company achieved a 71% year-over-year growth in the fourth quarter of 2024. However, because of a $595 million accounting charge related to stock-based compensation, the company faced a significant loss of $484 million. The global daily active unique users increased to 101.7 million, contributing to the growth in revenue. That said, the number of users was still below the consensus estimate of 103.1 million. Also, Reddit, Inc. (NYSE:RDDT) has been experiencing volatility due to an algorithm change in Google Search. The new algorithm impacted the company’s search traffic, specifically from logged-out users. Furthermore, as the user base is still underdeveloped compared to peers, it affects the advertising revenue, which forms a significant part of the total revenue and hence translates negatively among investors.
Reddit, Inc. (NYSE:RDDT)’s short float stands at 18.18%, the highest on our list. Such immense skepticism prevails despite its recent IPO buzz. Meanwhile, insider selling is at -6.21%, hinting that key stakeholders are taking premature profits. This dual pressure signifies a lack of sustained investor confidence in the platform’s monetization capabilities.
Overall, Reddit, Inc. (NYSE:RDDT) ranks first among the 20 large-cap stocks insiders and short sellers are dumping like crazy. While we acknowledge the potential of these companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RDDT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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