10 Stocks You Are Selling and Insiders Are Buying

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4. Applied Digital Corporation (NASDAQ:APLD)

Number of Hedge Fund Holders: 59

Applied Digital traded at $18.25, 64% below its 52-week high. Its data-center expansion offers substantial growth, but investors must finance construction before the full earnings stream arrives. At August 31, debt totaled $6.4 billion against $3.7 billion of cash and restricted cash; restricted balances are not freely available for every corporate need.

CEO Wes Cummins bought 55,803 shares and president Jason Gechen Zhang bought 300,000 shares on October 16, committing a combined $6.66 million. This cluster is a stronger cash commitment than the small director purchases elsewhere in the list. It was not unanimous insider buying: director Richard Nottenburg sold 31,250 shares on October 13.

Bulls have about 1.41 GW of leased capacity supporting roughly $36 billion of contracted revenue over the leases’ initial base terms. Fiscal Q1 adjusted EBITDA reached $64.4 million excluding ChronoScale, whereas the debt and cash figures above are consolidated. Keeping financing costs from consuming that progress is critical; our comparison of CoreWeave and IREN’s Different Rate Risks explains why contracted revenue does not remove expansion-financing risk across AI infrastructure.

Hedge-fund holders increased from 39 to 59 in Q2, the largest increase in this group. September short interest remained around 21% of float. Outstanding convertible notes mean some shorts could hedge debt exposure, so neither the high short percentage nor the older fund-count increase establishes a simple institutional verdict.

3. Lennar Corporation (NYSE:LEN)

Number of Hedge Fund Holders: 65

Berkshire Hathaway bought 2.42 million Lennar Class A and Class B shares on October 1–2 for $192.63 million. This was a rather large-shareholder purchase, not an operating executive buying personally, and the filing does not identify Warren Buffett as the decision-maker.

The housing downturn explains the opportunity and the risk here. Fiscal Q3 new orders fell 9%, and home-sales gross margin dropped to 15.8% from 17.5% as affordability pressures and incentives weighed on profitability. At $84.92, the Class A shares remained 36.5% below their 52-week high.

Bulls expect cheaper, faster construction and eventual demand stabilization to improve returns. But lower building costs help shareholders only if customer concessions do not absorb the savings. Lennar Cuts Delivery Forecast. Can Construction Savings Offset Heavy Incentives? examines that constraint.

Hedge-fund participation edged down from 66 to 65 in Q2, when Berkshire already held 13.11 million Class A shares. September short interest was about 9.3% of float. Berkshire’s later buying therefore should not be presented as evidence that institutional investors widely agree the housing cycle has bottomed.

2. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 80

PG&E Corporation (PCG) shares declined over 30% in recent months primarily due to a major political stalemate over wildfire liability protections in California and a weak third-quarter earnings report.

Hedge-fund participation stayed at 80 in Q2, with AQR holding 86.28 million common shares. That is substantial exposure predating the strategic review. September short interest was around 1.7% of float, much lower than at several other companies in this list.

Director John Larsen bought 7,500 shares at $12.20 on September 30, spending $91,500 and bringing his reported holdings to 36,685 shares.

The bullish argument has a near-term earnings foundation: on October 22, PG&E maintained 2026 core EPS guidance of $1.64–$1.66 and its 2027 range of $1.78–$1.82, despite weaker quarterly earnings. This means a growing stock is trading at a depressed 7 times its 2027 earnings. The unresolved question is whether an “unexpected” wildfire will push the company into bankruptcy again. The market thinks there is a 60% probability that this will happen. Insider John Larsen seems to disagree.

Read also PG&E’s $2 Billion Spending Deferral Raises Questions Over Its Growth Outlook

1. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 119

Oracle’s cloud demand has not eliminated doubts about paying for the capacity behind it. Fiscal Q1 infrastructure-cloud revenue increased 121% to $7.4 billion, but cash capital expenditure of $28.5 billion exceeded operating cash flow of $23.1 billion. Customer prepayments supplied $11.36 billion of that operating inflow. The stock closed at $126.16, 56.1% below its 52-week high.

Director Stephen Rusckowski’s trust bought 25,000 shares at a weighted average $139.352 on September 29, spending $3.48 million. By the cutoff, the shares were already 9.5% below his purchase price, a useful reminder that informed buyers can be early.

Hedge-fund holders increased from 115 to 119 in Q2; Fisher Asset Management held 13.26 million shares. September short interest was 2.6% of float, so the price decline should not be confused with exceptionally crowded outright short positioning.

Bulls have a $664 billion remaining-performance-obligation balance supporting future revenue visibility. Converting those commitments into cash after investment is the harder test. How Sustainable Is Oracle’s Cash Flow Without Customer Prepayments? examines the financing dependence that headline cloud growth can obscure.

While we acknowledge the risk and potential of ORCL as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than ORCL that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.

READ NEXT: Ameresco Insiders Bought About $1.9 Million After the Stock Fell. Are They Signaling an AI Power Rebound? and Micron Looks Cheap on Earnings. How Much Can Profits Fall Before That Changes?

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