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 Equinix, Inc. (NASDAQ:EQIX) 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 team of IT professionals working on a digital platform, indicating the company’s agile digital services.
Equinix, Inc. (NASDAQ:EQIX)
Number of Insiders Selling: 8
Market Capitalization: $81.53 billion
We start this list with one of the world’s largest third-party data center providers, Equinix, Inc. (NASDAQ:EQIX). The Redwood City, California-based company focuses exclusively on data center operations, offering colocation, interconnection, and internet connectivity services through a neutral platform that enables seamless data exchange between networks. Equinix operates 268 data centers across 34 countries, spanning 33.7 million gross square feet on every major continent.
For the full year of 2024, the company reported revenues of $8.75 billion, up by 7% from the previous year. Net income attributable to common stockholders amounted to $815 million, down 16% year-over-year. Adjusted EBITDA was $4.1 billion, representing a 160 basis-point year-over-year improvement.
In March, eight insiders, including the company’s CEO, sold a total of $5.39 million worth of Equinix shares at an average price of $860.15 per share. Currently, the stock trades at $837.68 per share, having lost 11.16% year-to-date and 2.67% over the past 12 months.
Nineteen analysts have given an average “Buy” rating on Equinix (NASDAQ:EQIX) stock with a price target of $971.56 per share, according to StockAnalysis.
Equinix (NASDAQ:EQIX) is also among the 20 best data center stocks to buy according to billionaires.
Overall, EQIX ranks 10th on our list of stocks Insiders are selling in March. While we acknowledge the potential of EQIX, 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 EQIX 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.
