In this article, we will take a detailed look at 10 Mid–Cap Stocks Insiders Are Selling Recently. We previously covered 10 Mid-Cap Stocks Insiders Are Buying Recently.
Why should investors analyze insider trading activity? Insiders, or people in high positions within a company—such as executives and directors—can have crucial insights into the company’s strategic moves, plans, and initiatives. When, for example, a CEO invests their own capital in company stocks, it can indicate strong confidence in the company’s future results.
What does it mean when insiders are selling their shares? It doesn’t necessarily mean bad news for the stock. Sometimes, large shareholders just want to trim their holdings to more appropriate position sizes based on the risk/reward potential.
It is important to note that both insider selling and buying can be driven by various motives. Therefore, any insider trading activity should be analyzed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. Many insider purchases don’t necessarily mean the company will be successful. That’s why due diligence before any investment is of the utmost importance. Investors should also take into account and carefully analyze underlying reasons for insider transactions. However, insider trading activity in combination with other relevant factors can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
To identify the 10 mid-cap stocks insiders are selling recently, we considered only stocks with a market capitalization of between $2 billion and $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders buying over the last two months.
With each stock we note the number of recent insider sales and the company’s current market capitalization. But why is it important to follow insider activity? Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
A young professional in a suit and tie making a call from a smartphone in a crowded trading floor.
10. C3.ai, Inc. (NYSE:AI)
Number of Insiders Selling: 8
Market Capitalization: $4.343B
C3.ai, Inc. is an Enterprise AI software provider focused on accelerating digital transformation. It offers services to build enterprise-scale AI applications, and its C3 AI Platform supports the value chain in any industry with AI applications for reliability, fraud detection, sensor network health, and customer and energy management. The company was founded in 2009 in California and went public in 2020. Since its initial public offering five years ago, C3.ai shares lost 72%.
In December and January, eight insiders, including the CEO and CFO, sold around $55.69 million worth of C3.ai shares at an average price of $37.28 per share. Out of the aggregate amount M Thomas Siebel, the company’s CEO, sold $22.88 million worth of shares at a price of around $31.73. The stock is currently trading at $33.48 per share, having lost 2.76% year-to-date. This way, Siebel reduced his ownership to $1.76 million worth of shares, as of January 15th.
For its fiscal second quarter ended October 31, 2024, the company reported total revenue of $94.3 million, an increase of 29% compared to $73.2 million one year ago. In December, C3.ai announced that in partnership with ECS, an IT systems integrator will work together to modernize information collection management processes for Army Intelligence.
Why are insiders selling C3.ai? Some analysts expressed concerns that the AI stock market bubble will burst in 2026, and therefore have downgraded their targeted market prices. In addition to market saturation, the AI industry faces potential regulatory challenges and geopolitical tensions.
On the other hand, a recent study from Cisco Systems Inc (NASDAQ:CSCO) revealed that 97% of CEOs plan to integrate AI into their operations, but only 1.7% feel fully prepared. They worry that their lack of AI understanding could negatively affect important decision-making in the boardroom. This might signal that once CEOs get more familiar with AI, the demand will grow again. According to data from Stock Analysts, 13 analysts have “Hold” as the average rating for AI stock, and the 12-month targeted price is $36.75 per share.
9. Alaska Air Group, Inc. (NYSE:ALK)
Number of Insiders Selling: 8
Market Capitalization: $9.161B
Through its subsidiaries, Alaska Air Group operates airlines working in three segments – Mainline, Regional and Horizon. The Seattle-based company recently acquired Hawaiian Airlines, which enabled the company to reach 140 destinations. Currently, it operates across North America, Central America, Asia, and the Pacific. Its subsidiaries include Alaska Airlines, Hawaiian Holdings, Inc., Horizon Air and McGee Air Services.
In December and January, eight insiders, including the President and CEO, sold around $12.17 million worth of Alaska Air Group shares at a price of approximately $64.86 per share. The stock is currently trading at $75.92 per share, having gained 17.25% since the beginning of the year.
According to the data from TipRanks, 12 Wall Street analysts hold a “Buy” rating on the stock, with the average price target set to $87.25 per share.
Mad Money host, Jim Cramer, recently commented, “While I like Delta, United, and Alaska Airlines, ways to play travel, there’s still some laggard, haggard companies out there that can act like skunks at a profits party.”
Alaska Air Group recently posted financial results for the fourth quarter and full year 2024, beating expectations on both revenue and earnings per share. For the full year net income reached $625 million or $4.87 per share, which compares to net income of $583 million, or $4.53 per share in 2023. Additionally, the company reported record full year revenue of $11.7 billion, and then in January it announced it is rewarding employees with an extra six weeks of pay for remarkable performance in a pivotal year.
Over the past 12 months, Alaska Air Group shares gained 103.38%.
8. Phreesia, Inc. (NYSE:PHR)
Number of Insiders Selling: 8
Market Capitalization: $1.68B
Phreesia is an IT company that provides healthcare organizations with a set of applications to automate and manage patient intake. In 2023, the company facilitated around 150 million patient visits, which accounts for more than 10% of U.S. healthcare visits. It is one of 10 Mid-Cap Stocks Insiders Are Selling Recently.
For the third quarter of fiscal 2025, Phreesia reported total revenue of $106.8 million, up 17% year-over-year. Net loss amounted to $14.4 million, compared to net loss of $31.9 million in the same period last year. For fiscal 2026, the company is projecting revenue in the range of $472 million to $482 million without any additional revenues from potential future acquisitions. It also expects adjusted EBITDA to be in the range of $78 million to $88 million.
In December and January, eight insiders, among which are CEO, CFO, and COO, sold a total of around $6.95 million worth of shares at a price of around $26.92 per share. The stock is now trading at $28.98, having gained 15.18% since the beginning of the year.
Of the total amount, the company’s co-founder, Chaim Indig, sold 56,305 shares worth around $1.54 million and retained 1.26 million shares.
Data from Stock Analysis reveals that 14 analysts have an average “Strong Buy” rating on the stock, and the 12-month stock price forecast is $31.07 per share. Phreesia is also one of Piper Sandler’s Top Technical Stock Picks: 20 Best Stocks
7. Nuvalent, Inc. (NASDAQ:NUVL)
Number of Insiders Selling: 8
Market Capitalization: $6.16B
Nuvalent is a clinical-stage biopharmaceutical company focused on therapies for cancer. Its robust pipeline includes investigational candidates for ROS1-positive, ALK-positive, and HER2-altered non-small cell lung cancer, and multiple discovery-stage research programs. Since it went public in July 2021, Nuvalent shares gained 363.29%.
Over the last two months, eight insiders, including President and CEO, CFO, CMO, and CSO, sold around $116.92 million worth of Nuvalent shares at an average price of $80.53. Nuvalent’s shares are now trading at $85.53, having gained 9.26% year-to-date. Over the past 12 months, the stock went up 2.36%.
Data from Stock Analysis shows that the average rating from 11 analysts is “Strong Buy,” and the 12-month stock price expectation is $112.36.
Even though Nuvalent is one of the 10 mid-cap stocks insiders are selling recently, at the same time it is the first of Joseph Edelman’s top 10 Long-Term Stock Picks. Edelman is a very respected investor recognized for his expertise in biotechnology and healthcare investing. He is the founder, CEO, and portfolio manager of Perceptive Advisors.
While some insiders reduced their positions within Nuvalent recently, some hedge funds, like Perceptive Advisors, Woodline Partners and Driehaus Capital grew their holding in the third quarter of 2024.
What makes Nuvalent an interesting investment is its innovative drug pipeline and focus on precision oncology. The company’s leading drug candidates target cancers driven by ROS1 and ALK gene alterations.
According to the company’s report for the quarter ended September 30, 2023, cash equivalents and marketable securities amounted to $1.2 billion, compared to $732.38 million at the end of 2023.
6. SoundHound AI, Inc. (NASDAQ:SOUN)
Number of Insiders Selling: 8
Market Capitalization: $6.21B
SoundHound AI is yet another AI company among mid-cap stocks that insiders have been ditching recently. Last December, as many as eight insiders, including CEO, CFO, COO, and CTO sold $31.98 million worth of shares at an average price of $19.24 per share. The stock is now trading at $15.01 per share, having lost 24.29% year-to-date.
The company’s CEO, Keyvan Mohajer, sold 742,876 shares worth around $12.62 million, and he remained with 2.02 million of the company’s shares.
The voice artificial intelligence company was founded in 2005, and it went public in 2022. Since then, its shares have grown 130%. The company offers voice AI solutions that enable businesses to offer conversational experiences to their customers. SoundHound’s voice AI is built on proprietary technology and comes in numerous languages. It also offers AI-driven products like Smart Answering, Smart Ordering and Dynamic Interaction, providing millions of products and services and processing billions of interactions each year for remarkable businesses.
As per data from Stock Analysis, six analysts have an average “Buy” rating on the stock, with a 12-month stock price target of $13.25.
Even Nvidia (NASDAQ:NVDA), a computer manufacturing giant with a market capitalization of $3.29 trillion holds a stake in SoundHound. The company’s technology is used across various industries and by renowned brands such as Kia and Hyundai in the automotive sector, Krispy Kreme, and Dine Brands Global’s Applebee’s in the restaurant space.
Over the past 12 months, the company’s shares gained 548.72%.
5. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Number of Insiders Selling: 8
Market Capitalization: $4.916B
Kratos Defense & Security Solutions, Inc. is a California-based provider of unmanned systems, satellite communications and cybersecurity solutions for the defense and security sectors. Among its customers are the U.S. federal government, foreign governments, and commercial enterprises.
In December and January, eight insiders sold a total of around $2.09 million worth of Kratos Defense’s shares at an average price of about $29.26 per share. The stock is now trading at $33.09 per share, having gained 25.44% year-to-date. Over the last 12 months, the company’s shares went up 80.03%.
As per data from Stock Analysis, the average rating for Kratos Defense stock from 11 analysts is “Buy.” The 12-month stock price forecast is $28.4.
For the third quarter of 2024, Kratos Defense reported revenues of $275.9 million, up from $274.6 million in the same period of 2023. The company also disclosed a net income of $3.2 million, compared to a net loss of $1.6 million in the third quarter of 2023. In January, Kratos Defense announced it was awarded a Geolocation Global Support Services (GGSS) contract in the amount of $48 million, and a a five-year OTA contract for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 under Task Area 1, with the total value of this award if all options are exercised over the five years being $1.45 billion.
Recently, Jim Cramer commented on Kratos Defense stock saying “Modern military, modern defense, I like the story very much. I think you’re in good shape.”
4. Ambarella, Inc. (NASDAQ:AMBA)
Number of Insiders Selling: 9
Market Capitalization: $3.279B
In the fourth spot on our list of mid-cap stocks insiders are selling recently is Ambarella, a semiconductor design company, concentrated on low-power, high-definition and Ultra HD video compression, image processing and computer vision processors.
Over the last two months, nine insiders, including CEO, CFO, and COO sold a total of around $2.31 million worth of the company’s shares at an average price of $75.35 per share. Currently, Ambarella shares are trading at $76.80 having gained 5.58% since the beginning of the year.
According to data from Stock Analysis, 12 analysts have an average “Buy” rating on the stock, with a price target of $84.17. Furthermore, on January 27th, Rosenblatt Securities reiterated a “Buy” rating on Ambarella stock with a price target of $100, writes Morningstar.
For the nine months ended October 31, 2024, the company disclosed revenue of $200.9 million, up 15% from the nine months ended October 31, 2023. For the same nine months of 2024 GAAP net loss amounts to $96.9 million or loss per diluted ordinary share of $2.36. This compared with GAAP net loss of $108.8 million or or loss per diluted ordinary share of $2.74 for the nine months ended October 31, 2023. For the fiscal year 2025, Ambarella expects revenue between $76 and $80 million.
Ambarella is one of the 10 Unstoppable Tech Stocks to Buy Right Now. Over the last 12 months, its shares gained 38.58%.
3. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)
Number of Insiders Selling: 10
Market Capitalization: $5.152B
Ionis Pharamceuticals is a biotechnology company focused on discovering and developing RNA-targeted therapeutics. Currently, it has six marketed medicines and a pipeline in innovative therapies across areas of neurology, cardiology and rare diseases.
In December 2024, the U.S. Food and Drug Administration (FDA) greenlighted Tryngolza, an RNA-targeted therapy developed by Ionis for the treatment of familial chylomicronemia syndrome (FCS). Tryngolza is the first-ever FDA-approved treatment that significantly and substantially reduces triglyceride levels in adults with FCS and offers clinically meaningful reduction in AP events when used with an appropriate diet (≤20 grams of fat per day).
In January and February, 10 insiders, including CEO, CCO, and CBO sold approximately $5.12 million worth of Ionis Pharmaceuticals shares at an average price of around $32.54 per share. The stocks is now trading at $31.48, having lost 9.95% year-to-date.
As many as 18 analysts have “Buy” as the average rating for Ionis stock, while the stock price target is $62.0. David Lebowitz, an analyst from Citi, recently gave a “Buy” rating on the company’s shares, while the associated price target remains the same at $67.00.
Ionis is also one of the 12 Best Healthcare Stocks to Buy According to Analysts. Over the last 12 months, the company’s shares lost 37.51%.
2. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
Number of Insiders Selling: 11
Market Capitalization: $3.757B
Apellis Pharmaceuticals is another biopharmaceutical company on this list of 10 mid-cap stocks insiders are selling recently. The company is focused on the development of innovative therapies for various serious diseases, by controlling a part of the immune system known as the complement cascade. The company’s two medicines targeting C3, the central protein in the cascade, have been approved. One of these is the first ever therapy for geographic atrophy, a leading cause of blindness around the world. In January, this medicine, Syfovre, was also approved for use in Australia.
Over the last two months, 11 insiders, including CEO, CFO, and CMO sold around $2.86 million worth of Apellis Pharmaceuticals shares at an average price of around $29.95 per share. The stock is now trading at $28.68, having lost 10.12% since the beginning of the year.
Over the last 12 months, the stock declined 57.67%, with some analysts attributing this decline to lack of approval of Syvovre in Europe. However, according to data from Stock Analysis, 18 analyst have an average “Buy” rating on Apellis Pharmaceuticals stock, with the 12-month price target of $46.71.
For the third quarter of 2024, the company reported it has generated $152 million in Syfovre US net product revenue. Total revenue for the period amounted to $196.8 million, which compares to total revenue of $110.4 million, including $75.3 million in Syfovre US net product revenue for the third quarter of 2023.
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 12th, 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.
