10 Mid-Cap Stocks Insiders Are Selling Recently

1. Loar Holdings Inc. (NYSE:LOAR)

Number of Insiders Selling: 13

Market Capitalization: 7.13B

An aerospace and defense company, Loar Holdings, is one of the mid-stocks that insiders have been selling over the last two months. What happened is that the company announced the pricing of its upsized public offering of 5.75 million shares of common stock, including 1.9 million shares offered by certain stockholders and 3.85 million shares offered by Loar at $85.0 per share.

Most likely, as part of the upsized offering, on December 12^th, 13 insiders, including Executive Co-Chairman sold around $530.62 million worth of Loar Holdings shares at a price of $81.18 per share. The stock is currently trading at $77.84, having gained 5.32% since the beginning of the year.

The combination of stockholder selling and the company issuing new shares often happens in public offerings. In the case of Loar Holdings’ offering, the company noted it will not receive any of the proceeds from the sale of stock offered by the selling stockholders. From collected net proceeds from newly issued shares sold, it plans to repay borrowings outstanding under its credit agreement.

For the third quarter of 2024, the company reported net sales of $103.5 million, up 25.0% compared to the prior year’s quarter. Adjusted EBITDA was of $38.1 million, up 31.8% compared to same quarter of 2023.

In August, Laor completed the acquisition of Applied Avionics, Inc. for approximately $385 million in cash. Applied Avionics designs, develops, and manufactures highly engineered interface solutions for avionics and other aerospace and defense electronics. Applied Avionics’ brands, Vivisun and Nexsys are the common choice of leading aircraft retrofit providers, military prime contractors, and Tier 1 suppliers.

According to data from four analysts, the average rating on Loar Holdings stocks is “Strong Buy,” with a 12-month stock price target of $85.5. Over the past 12 months, the company’s shares gained 59.51%,

Overall, LOAR is first among the 10 mid-cap stocks insiders are selling recently. While we acknowledge the potential of LOAR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LOAR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. 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.