We recently published a list of 10 Stocks Insiders Are Selling In March. In this article, we are going to take a look at where CNH Industrial N.V. (NYSE:CNH) stands against other stocks Insiders are selling in March.
Wall Street experienced a challenging week, marked by turbulence as the broader market entered a correction, declining 10.1% from its record high in February. All three major indexes dropped between 2.3% and 3.1% over the week. However, Friday brought a little more optimism among investors as all three major indexes closed a bit higher. Blue-chip stocks closed 1.65% higher, the broader market index gained 2.13% and the NASDAQ Composite closed Friday session 2.61% higher.
This week continues to keep investors on their toes as the U.S. retail sales report, scheduled for release on Monday, will provide insights into consumer spending. According to Yahoo Finance, some experts believe investors will closely examine the report for signs of an economic slowdown. Experts polled by Dow Jones expect retail sales to have increased by 0.6% last month.
Investors are also closely watching for another significant update this week: the Federal Reserve’s decision on interest rates. Since September, the Fed has cut interest rates three times and still, the broader market entered a correction.
Examining recent insider trades can offer valuable insights, as executives often have a deeper understanding of their companies. For instance, when a CEO or CFO buys company stock, it may signal strong confidence in the business’s future.
However, insider selling doesn’t necessarily reflect a lack of confidence; it could be due to personal financial needs or a desire to diversify investments. These transactions are often executed through pre-arranged plans, like 10b5-1 plans, to avoid any appearance of improper timing. While insider activity can be informative, it’s important to consider it alongside the company’s financial health, market trends, and industry developments.
Our Methodology
To identify the 10 stocks insiders are selling in March we used Insider Monkey’s insider trading stock screener and looked for stocks where at least three insiders sold shares this month. With each stock, we note the number of insiders who recently sold shares and the company’s market capitalization.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A tractor plowing a field in the warm golden light of a setting sun.
CNH Industrial N.V. (NYSE:CNH)
Number of Insiders Selling: 9
Market Capitalization: $16.14 billion
CNH Industrial N.V. (NYSE:CNH) is a global equipment and services company specializing in the design, production, and sale of agricultural and construction equipment. The Basildon, United Kingdom-based company operates across North America, Europe, the Middle East, Africa, and the Asia Pacific. It offers farm machinery and implements under brands like Case IH, New Holland, STEYR, and Raven, including tractors, harvesters, and precision agriculture solutions.
Its construction segment produces equipment such as excavators, dozers, graders, and loaders under CASE Construction Equipment, New Holland Construction, and Eurocomach brands. Its Financial Services segment, branded as Banco CNH, provides financing for customers and dealers, including loans for new and used equipment, charge accounts, and wholesale financing.
For the full year of 2024, CNH Industrial (NYSE:CNH) disclosed revenue of $19.84 billion, down 20% year-over-year. Net income amounted to $1.26 billion, compared to net income of $2.29 billion in the prior year. The company reduced its agricultural production hours by 34% in the fourth quarter of 2024, and 28% for the whole year, improving efficiency, to counter the declining demand. These advances helped lower stock levels by over $700 million at the dealer’s end in the fourth quarter. Through manufacturing process optimization and increasing operational efficiency, the company was able to achieve $600 million in cost savings.
In March, nine insiders, including the company’s CEO, and CFO, sold a total of approximately $4.79 million worth of CNH Industrial shares at an average price of $11.64 per share. Currently, the stock trades at $12.93 per share, having gained 12.12% year-to-date, and 4.61% over the past 12 months.
The consensus rating on CNH Industrial (NYSE:CNH) stock from 12 analysts is “Moderate Buy” with a price target of $15.38, according to MarketBeat.
Overall, CNH ranks 8th on our list of stocks Insiders are selling in March. While we acknowledge the potential of CNH, 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 CNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
