10 Stocks You Are Selling and Insiders Are Buying

8. Hormel Foods Corporation (NYSE:HRL)

Number of Hedge Fund Holders: 38

Hormel’s $21.06 share price was 20.8% below its 52-week high. Fiscal Q3 retail organic volume fell 9%, reflecting business exits and contract-manufacturing effects alongside weaker demand. Management lowered its annual sales outlook even while raising the bottom of its adjusted EPS range, leaving investors dependent on efficiency gains.

Board chairman William Newlands bought 10,000 shares at $20.10 on October 5, spending $201,000. His reported position increased about 15%, making this more than a token addition, though it remains one buyer’s judgment. You can see the 17 year history of insider purchases in HRL here.

Hedge-fund holders increased from 35 to 38 in Q2, before this purchase. September short interest was 22.8 million shares. Those opposing positions among hedge funds point to the the need for evidence that stronger profitability can survive continued volume pressure.

The proposed $1.055 billion Brakebush acquisition would expand Hormel’s foodservice chicken business, but management does not expect adjusted EPS accretion until fiscal 2028. Buying growth creates another test for capital allocation. Hormel: Can Foodservice Expansion Earn More Than Its Cost of Capital? examines the returns hurdle. A recovery needs better demand and acquisition economics.

7. Acuity Inc. (NYSE:AYI)

Number of Hedge Fund Holders: 40

Acuity’s lighting business faces softer demand and margin pressure. Fiscal Q4 lighting sales slipped 0.4%, while its adjusted operating margin fell 130 basis points to 18.8%. At $318.72, the stock remained 16.2% below its 52-week high despite recovering from lower levels.

The institutional picture is quite divided, with hedge-fund holders’ number falling from 43 to 40 in Q2, in Insider Monkey database, yet AQR increased its position from 0.44 million to 1.27 million shares. September short interest was 3.2% of float. Fewer holders did not prevent one large quantitative manager from substantially expanding its exposure.

Director Laura O’Shaughnessy bought 73 shares at $302.32 on October 16, spending $22,069. Her reported position rose only 2.3%, so this purchase deserves limited weight in the investment case.

Bulls have stronger operating evidence in the Intelligent Spaces segment, where quarterly sales increased 16.6%. Full-year operating cash flow reached $825.6 million, supporting debt repayment and repurchases. The question is whether that progress can outweigh weakness in the much larger lighting operation. Acuity Downgraded on a Softening Lighting Market: Cyclical Dip or Structural Slowdown? examines the demand pressures behind the discount.

6. McCormick & Company, Incorporated (NYSE:MKC)

Number of Hedge Fund Holders: 48

McCormick’s shares were 33.5% below their 52-week high at $48.12. Its proposed combination with Unilever’s food business introduces financing, integration and regulatory risks just as organic demand remains subdued. Fiscal Q3 organic sales increased 1.9%, with pricing offsetting slightly negative volume and mix; headline sales growth of 17.4% largely reflected acquisitions.

Director Gavin Hattersley bought 1,000 nonvoting shares at $44.61 on October 2, committing $44,610 near the stock’s annual low. Before 2026 the last time an insider bought MKC shares was in 2017 (see the history here) which makes this a notable purchase.

The bull case rests on a wider brand portfolio and operating efficiencies. Existing McCormick shareholders would own 35% of the combined company, making the benefits per share more relevant than the combined business’s size. McCormick-Unilever Food Deal Faces UK Competition Review: What It Means for Investors explains how regulatory conditions could affect that outcome.

Hedge-fund participation stayed at 48 in Q2. September short interest was 8.3% of float, but the stock-based transaction can attract merger hedges; it would be misleading to treat every short share as an outright bet against McCormick’s business.

5. DICK’S Sporting Goods, Inc. (NYSE:DKS)

Number of Hedge Fund Holders: 52

The Foot Locker acquisition has complicated DICK’S recovery case. Q2 comparable sales rose 4.9% at the core business but fell 3.6% on a pro forma basis at Foot Locker, which recorded a $31.9 million operating loss. Full-year adjusted EPS guidance of $11–$12 reflects a less profitable combined business than investors had hoped. Shares were 40.2% below their 52-week high at $144.65.

Matthew Barnes, president of Foot Locker International, bought 3,665 shares for $499,869 on September 30. His operating role makes the purchase relevant to the struggling acquired business.

Hedge-fund holders rose from 48 to 52 in Q2. The subsequent September short position reached 11.34 million shares, or 17.9% of float, up 41.6% from the previous reporting period. That increase warrants attention.

Bulls need the healthy core operation to sustain growth while Foot Locker’s promotions and operating losses recede. DICK’S Sporting Goods’ Foot Locker Integration Clouding Strong Core Results separates those two businesses and explains why acquisition-driven revenue growth alone is insufficient.