This article presents an overview of Insiders Are Dumping These 5 Financial Stocks. For a detailed overview of such stocks, read our article, Insiders Are Dumping These 12 Financial Stocks.
5. Chubb Limited (NYSE:CB)
Number of Hedge Fund Investors: 37
Insurance company Chubb Limited (NYSE:CB) saw insider selling activity recently as Timothy Boroughs, Executive Vice President and Chubb Limited (NYSE:CB) Group’s and Chief Investment Officer, on March 20 sold 20,000 shares of Chubb Limited (NYSE:CB) at $258.86 per share. Since then the stock
Aristotle Atlantic Core Equity Strategy made the following comment about Chubb Limited (NYSE:CB) in its third quarter 2023 investor letter:
“Chubb Limited (NYSE:CB) contributed to outperformance due to sustained momentum across business units and global regions, a favorable property and casualty (P&C) rate environment and an attractive valuation with shares trading below historical averages. The company’s earnings report early in the quarter highlighted its underwriting and risk-assessment capabilities, with management projecting a continuation of what we believe are positive pricing trends through the remainder of this year.”
4. Coinbase Global Inc (NASADQ:COIN)
Number of Hedge Fund Investors: 41
Coinbase Global Inc (NASADQ:COIN) shares have gained about 77% this year amid Bitcoin posting a roaring rebound. However, the stock saw several insider selling transactions this month. Gokul Rajaram, a board member at Coinbase Global Inc (NASADQ:COIN), sold 1,145 shares of Coinbase Global Inc (NASADQ:COIN) at $260.00 per share on March 21. Coinbase Global Inc’s (NASADQ:COIN) CFO Alesia Haas also sold 4,750 shares of Coinbase Global Inc (NASADQ:COIN) on March 15. Since then the stock has jumped 15%.
Patient Capital Management stated the following regarding Coinbase Global, Inc. (NASDAQ:COIN) in its fourth quarter 2023 investor letter:
“Coinbase Global, Inc. (NASDAQ:COIN) climbed an incredible 131.7% in the quarter outpacing the 57% gain in bitcoin over the same period as investors became excited about the potential approval of a Bitcoin ETF in the new year. Coinbase continues to stand out as the lead survivor in an industry of fading and failing leaders. Cost savings initiatives taken earlier in the year have resulted in three quarters of positive EBITDA leading to expectations for “meaningful positive adjusted EBITDA” for the full year 2023. We continue to believe COIN has the potential to be the platform for crypto with $5B in liquidity providing the ability to invest and weather any crypto winters.”
3. First Citizens BancShares Inc (Delaware) Class (NASDAQ:FCNCA)
Number of Hedge Fund Investors: 54
Ellen R. Alemany, a director at First Citizens BancShares Inc (Delaware) Class (NASDAQ:FCNCA), on March 20 sold 3,000 shares of First Citizens BancShares Inc (Delaware) Class (NASDAQ:FCNCA) at $1,555.00 per share. Since then the stock has gained about 2.3%.
Gator Capital Management made the following comment about First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its Q3 2023 investor letter:
“The Fund’s largest position is First Citizens BancShares, Inc. (NASDAQ:FCNCA) (“First Citizens” or “FCNCA”). We acquired our stake over the past three years. Initially, we owned and traded around a small position in CIT Group Inc. (“CIT”) during the summer of 2020. We felt CIT was undervalued and management was making progress in reducing risk during the Covid-19 pandemic. In late 2020, CIT agreed to be acquired by First Citizens. We added to our CIT stake the morning of the acquisition announcement because we thought the acquisition was so financially attractive that First Citizens’ shares would rally and pull CIT’s shares higher. Our CIT shares were exchanged for First Citizens shares when the merger completed. We held onto our First Citizens shares because we admired the management team, we felt the bank was undervalued, and we projected the bank would benefit from higher interest rates. Then, earlier this year, First Citizens was the winning bidder in the FDIC’s auction of the failed Silicon Valley Bank (“SVB”). We added significantly to the Fund’s First Citizens position on the following Monday morning because the deal was unbelievably favorable for First Citizens.
First Citizens’s stock price rose more than 50% that day and has risen another 40% in the months since the SVB acquisition. We have not sold any shares. We believe the stock still has the potential to double over the next three years. Despite this attractive upside, we think the downside is minimal. Our downside scenario is an unchanged stock price in three years…” (Click here to read the full text)
2. CME Group Inc (NASDAQ:CME)
Number of Hedge Fund Investors: 55
Financial services company CME Group Inc (NASDAQ:CME) ranks second in our list of the financial stocks insiders are selling. Timothy Francis McCourt, Senior Managing Director and Global Head of Equity and FX, on March 15 sold 556 shares of CME Group Inc (NASDAQ:CME) at $217.50 per share. Over the past one month the stock is down 2.3%.
L1 Capital International Fund stated the following regarding CME Group Inc. (NASDAQ:CME) in its fourth quarter 2023 investor letter:
“Other changes were relatively small, but targeted. For example, we reduced our investment in CME Group Inc. (NASDAQ:CME) and increased our investment in Intercontinental Exchange, two over-lapping but meaningfully differentiated derivatives exchanges. CME has benefitted from U.S. interest rate volatility and overall is a more defensive business compared to Intercontinental Exchange. We expect Intercontinental Exchange’s mortgage technology business to benefit from lower residential mortgage rates over time.”
1. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Investors: 141
Mastercard Incorporated (NYSE:MA) is one of the financial stocks that recently saw insider selling activity. Mastercard Incorporated (NYSE:MA) CEO Michael Miebach on March 15 sold 7,850 shares of Mastercard Incorporated (NYSE:MA) at $475.46 per share. Since then through March 26 the stock price is almost flat.
Mastercard Incorporated (NYSE:MA) is one of the most popular stocks among the elite hedge funds tracked by Insider Monkey. As of the end of the fourth quarter of 2023, 141 hedge funds had stakes in Mastercard Incorporated (NYSE:MA).
Ensemble Capital Management stated the following regarding Mastercard Incorporated (NYSE:MA) in its fourth quarter 2023 investor letter:
“Mastercard Incorporated (NYSE:MA) (7.21% weight in the Fund): Payment companies are data companies. As we discussed last quarter in our write up of Mastercard, merchants can generate significant value from analyzing payment data to better understand their customers. Mastercard has long built AI-based products to enhance payment security and provide merchants with rich data analytics. In December, they rolled out Muse, a new online shopping companion that merchants who utilize certain Mastercard services can install on their own websites.
Muse seeks to replicate the instore experience of working with a salesclerk by allowing the customer to use natural language to browse products. Online shopping already works well if you know exactly what you are looking for, but Muse is striving to help customers find things to buy even when they aren’t sure what they are looking for.
Mastercard (7.21% weight in the Fund): In late October, Mastercard reported earnings that investors interpreted as pointing to a near term slowdown in payment growth. The stock fell 5.6% on the day. By the end of the next week, the stock had recovered its losses and went on to reach a new all time high on the last day of the year. But the 7.9% gain on the quarter slightly trailed the S&P 500.”
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the Billionaire Investor Stan Druckenmiller and Insiders Are Piling Into These 11 Stocks and the 16 Best Financial Stocks To Buy According to Hedge Funds.
