We recently compiled a list of the 20 Large-Cap Stocks Insiders and Short Sellers Are Dumping Like Crazy. In this article, we are going to take a look at where Tractor Supply Company (NASDAQ:TSCO) stands against the other large-cap stocks.
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.
READ ALSO: Billionaire Stephen Mandel’s 10 Stocks with Huge Upside Potential
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.
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).
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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.
Overall TSCO ranks 18th among our list of the large-cap stocks insiders and short sellers are dumping like crazy. While we acknowledge the potential of TSCO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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 TSCO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
