Corporate Insiders Are Selling These 10 Small-Cap Stocks

Published on March 27, 2024 at 4:37 pm by Fahad Saleem in Hedge Funds, Insider Trading, News

In this article, we will take a detailed look at Corporate Insiders Are Selling These 10 Small-Cap Stocks. For a quick overview of such stocks, read our article Corporate Insiders Are Selling These 5 Small-Cap Stocks.

When the inflation crisis started and the Federal Reserve began raising interest rates, investors were quick to exit small-cap stocks which are deemed risky in a belt-tightening environment. Small-cap stocks started to rebound in the last quarter of 2023, when the AI-led rally pushed the broader stock market high, crushing all recession-related worries. The Russell 2000 Index jumped 14% in the fourth quarter, surpassing the large cap-focused Russell 1000 and mega-cap Russell Top 50 Indexes in the period.

Tom Lee, the Managing Partner at Fundstrat Global Advisors, is one of the market experts who are bullish on small-cap stocks for 2024. Recently, while talking to CNBC, Lee said that he expects the Russell 2000 to jump by a whopping 50% in 2024 and cross 3,000 for the first time. Like many others, Lee’s thesis is that when the Federal Reserve begins to cut rates, investors will flock to smaller, growth-focused companies for long-term gains. Investment management company Lord Abbett also shared similar optimism around small-cap stocks in a report published in January:

“As 2024 begins, there’s growing optimism for a resurgence in global small cap stocks. In 2023, these stocks underperformed compared to their large cap counterparts, creating a significant valuation gap. The convergence of favorable factors, including potential changes in global central bank policies, suggests a bright future for small caps in 2024. Interest-rate cuts in response to easing inflation could lower borrowing costs for small cap companies, encouraging growth. Additionally, the potential for increased merger and acquisition activity is high, as lower funding costs could drive larger companies to acquire high-growth small cap firms.”

But given the current rally of mega-cap tech stocks on the back of the AI boom, many also question this bullish thesis about the broader small-cap space. After all, over the past several years small caps have failed to attract investor attention. Since the beginning of 2020, the Russell 2000 index jumped 24%, compared to the S&P 500’s over 60% gain. A recent report by Financial Times quoted Greg Tuorto, a small-cap portfolio manager at Goldman Sachs Asset Management, who said that he has not seen “big money” moving into small-cap stocks since 2016-2017. The analyst believes a “little greed”, M&A activity and a rebound in IPOs could infuse life in small-cap stocks.

Part of the reason why small-cap indices have been posting lackluster results is the fact that many small-cap companies end up losing a lot of money or go bankrupt. These losers drag the overall returns of small-cap indices. But the real allure of small-cap stocks is their capability to reward investors, who are willing to take the risk and put in the effort, with huge returns. Tuorto reportedly said that if (and that’s a big if) you pick the “right” small-cap stocks, you are not “right by 20 percent more than the Street, your earnings and revenue estimates could be double where the consensus is .”

While some investors are positioning themselves to gain from the possible rally in small-cap stocks, there are some corporate insiders dumping small-cap names. In this article we will take a look at some of the small-cap stocks that recently saw insider selling activity. To find these stocks we used Insider Monkey’s insider trading stock screener and selected small-cap stocks that saw insider selling over the past few weeks.

Photo by jason briscoe on Unsplash

10. Mission Produce Inc (NASDAQ:AVO)

Number of Hedge Fund Investors: 2

California-based avocado company Mission Produce Inc (NASDAQ:AVO) is one of the small-cap stocks with recent insider selling. Luis A. Gonzalez, a board director at Mission Produce Inc (NASDAQ:AVO), dumped 42,008 shares of Mission Produce Inc (NASDAQ:AVO) on March 18. On March 19 he sold 7,183 company shares. On March 12 the director had sold 231,250 shares of Mission Produce Inc (NASDAQ:AVO) at $11.83 per share. Since March 12 the stock is down about 2.9%.

Earlier this month Mission Produce Inc (NASDAQ:AVO) posted first quarter results, according to which adjusted EPS in the period came in at $0.09, beating estimates by $0.16. Revenue in the quarter jumped 21.2% year over year to $258.7 million, surpassing estimates by $47.95 million.

The company talked about business updates and expectations in its earnings call:

“We believe the business is well positioned to generate positive free cash flow in fiscal 2024 and beyond. I want to reiterate that our core capital allocation priority is maintaining a healthy capital structure that minimizes leverage. Debt paydown remains our near-term priority and given our forecast for improved operating cash flow for the full year of fiscal 2024, we expect to be in position to strengthen our balance sheet by the end of this fiscal year. In terms of our near-term outlook on the fundamental drivers of our operations, we are providing some context around our expectations for industry conditions to help inform your modeling assumptions. Beginning with avocados, industry volumes are expected to be relatively flat in the fiscal 2024 second quarter versus the prior year period.

Sourcing from Mexico should taper off in the latter part of the quarter as we near completion of the current harvest season, while California harvest volume should begin to build toward the middle of the quarter as weather permits. Peruvian volumes are unlikely to have a meaningful impact on the market during the quarter. Avocado pricing is expected to be slightly higher on a sequential basis and approximately 10% to 15% higher than the $1.30 per pound average experienced in second quarter of fiscal 2023, assuming that volume aligns with our expectations. Turning to blueberries, harvest timing shifts relative to last year have extended our Peruvian blueberry season. As a result, we expect that approximately 20% of the harvest will be sold through in the fiscal second quarter, whereas the season was substantially complete in the prior year period.”

Read the entire earnings call transcript here.

9. Agiliti Inc (NYSE:AGTI)

Number of Hedge Fund Investors: 6

Minnesota-based medical equipment company Agiliti Inc (NYSE:AGTI) ranks ninth in our list of the small-cap stocks insiders are selling. Lee Neumann, the General Counsel and VP at Agiliti Inc (NYSE:AGTI), on March 20 sold 4,685 shares of Agiliti Inc (NYSE:AGTI) at $10.07 per share. Agiliti Inc’s (NYSE:AGTI) CEO Tom Leonard had sold 27,558 shares of Agiliti Inc (NYSE:AGTI) on February 14 at $7.23 per share. Since then the stock is up 40%.

Alger Weatherbie Specialized Growth Fund made the following comment about Agiliti, Inc. (NYSE:AGTI) in its Q3 2023 investor letter:

“Agiliti, Inc. (NYSE:AGTI) provides end-to-end healthcare technology management and service solutions to the U.S. healthcare industry. The company also offers comprehensive medical equipment management and service solutions to reduce capital and operating expenses, increase medical equipment and staff productivity, and improve patient safety. During the quarter, shares detracted from performance after the company reported mixed fiscal second quarter results, where revenues beat consensus estimates but missed on earnings. Further, management lowered their full year 2023 earnings guidance, where they cited two potential headwinds: 1) continued contraction in their peak needs rentals business due to excess equipment inventory at hospitals purchased during the pandemic, and 2) higher-than-expected initial costs for on- boarding larger contract wins.”

8. Biolife Solutions Inc (NASDAQ:BLFS)

Number of Hedge Fund Investors: 10

Bioproduction tools and solutions company Biolife Solutions Inc (NASDAQ:BLFS) ranks eighth in our list of the small-cap stocks insiders are selling. Amy DuRoss, a director at Biolife Solutions Inc’s (NASDAQ:BLFS) board, sold 5,065 shares of Biolife Solutions Inc (NASDAQ:BLFS) on March 13 at $17.00 per share. Since then the stock has gained by 2.78%.

Conestoga Micro Cap Composite made the following comment about BioLife Solutions, Inc. (NASDAQ:BLFS) in its Q3 2023 investor letter:

“BioLife Solutions, Inc. (NASDAQ:BLFS): BLFS engages in the development, manufacture, and marketing of bio preservation tools for cells and tissues. The company reported financial results below estimates for 2Q23, including revenues down 3% year-over-year. A 26% decline for freezers and thaw systems had the largest negative impact on results. Management also lowered financial guidance for 2023 and confirmed their intent to divest the freezers business, about 1/3 of total revenues, by year-end. The bioprocessing industry continues to be negatively impacted by inventory destocking and elongated sales cycles.”

7. SoundHound AI Inc (NASDAQ:SOUN)

Number of Hedge Fund Investors: 13

AI-based voice technology company SoundHound AI Inc (NASDAQ:SOUN) has gained a lot of attention this year on the back of the AI boom, after SoundHound AI Inc (NASDAQ:SOUN) revealed its partnership with Nvidia. However, the stock is currently being dumped many corporate insiders. Marcus Lawrence, a director at SoundHound AI Inc’s (NASDAQ:SOUN) board, sold 100,000 shares of SoundHound AI Inc (NASDAQ:SOUN) on March 12 at $7.13 per share. SoundHound AI Inc (NASDAQ:SOUN) CEO Keyvan Mohajer also sold 48,837 company shares at $8.37 on March 19. SoundHound AI Inc’s (NASDAQ:SOUN) CFO, COO and Chief Product Officer were also seen selling SoundHound AI Inc (NASDAQ:SOUN) shares this month. Since March 19, SoundHound AI Inc (NASDAQ:SOUN) shares have lost about 30% in value.

6. Supernus Pharmaceuticals Inc (NASDAQ:SUPN)

Number of Hedge Fund Investors: 16

Maryland-based biopharma company Supernus Pharmaceuticals Inc (NASDAQ:SUPN) saw insider selling activity earlier this month when its VP of Intelletual Property and Chief Scientific Officer Padmanabh P. Bhatt on March 21 sold 14,491 shares of Supernus Pharmaceuticals Inc (NASDAQ:SUPN) at $35.31 per share. Since then the stock is down 7.66%.

Click to continue reading and see Corporate Insiders Are Selling These 5 Small-Cap Stocks.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up