We recently published a list of 15 Stocks With The Most Insider Sales In The Last Quarter. In this article, we are going to take a look at where Loar Holdings Inc. (NYSE:LOAR) stands against other stocks with the most insider sales in the last quarter.
A veil of uncertainty has hung over Wall Street these past few weeks, and the cover seems even tighter as investors and economists hold their breath ahead of the Fed’s big announcement on Wednesday.
The Fed will reveal its interest rate decision, which will be followed by a press conference with Fed Chair Jerome Powell. Since September, the Fed has cut interest rates three times, and still, the broader market entered a correction. Many experts believe that interest rate cuts are off the table for this month and are focusing on the Fed officials’ ‘dot plot’ and future rate decisions, according to Yahoo Finance.
Amid these expectations, blue-chip companies dropped 0.62%, the broader market index declined 1.07%, and the NASDAQ Composite fell 1.71%, remaining in correction territory. NASDAQ Composite was dragged by some of the biggest gems in the tech sector.
Evercore ISI’s Julian Emanuel said that Powell should calm the market by assuring investors the economic growth is still healthy and that inflation is expected to move toward the Fed’s 2% target.
Scott Helfstein, Global X’s head of investment strategy noted that even though there are some risks to price stability and full employment “this is not time to sell and go away, but perhaps time to review long-term strategy against near-term volatility.”
As political and economic landscapes shift, some analysts remain optimistic about AI technology’s growth potential. Insider trading often draws attention during such times, as company executives have unique insights into their organizations. For example, when a CEO or CFO buys company stock, it may signal confidence in the company’s future.
However, insider selling doesn’t necessarily reflect a lack of faith in the company. It could be driven by personal financial needs or a desire to diversify assets. Executives often use pre-established plans, like 10b5-1 plans, to ensure transparency and avoid accusations of improper timing.
While insider trading can offer valuable clues, it’s crucial to consider it alongside factors like financial performance, market trends, and industry developments.
Our Methodology
We’ll focus on the stocks with the highest number of insider sales in the past quarter. Using Insider Monkey’s insider trading screener, we’ve identified stocks where at least five insiders made sales between October 1 and December 31. From this group, we’ve highlighted the 15 stocks with the most individual sales.
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).
For each stock, we provide details on the number of insider sales and the company’s current market capitalization.
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Loar Holdings Inc. (NYSE:LOAR)
Number of Insiders Selling: 13
Market Capitalization: $6.12 billion
Sixth among the 15 stocks with the most insider sales in the last quarter is an aerospace and defense company, Loar Holdings Inc. (NYSE:LOAR). It is also one of the 10 mid-cap stocks insiders are selling recently. The White Plains, New York-based company offers products across multiple categories, including airframe components, avionics, de-ice and ice protection, flight controls, motion controls, environmental, safety devices, autothrottles, lap-belt airbags, carbon and metallic brake discs, and more.
In August, Loar (NYSE:LOAR) 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.
On December 12, 13 insiders sold a total of $530.61 million worth of Loar Holdings shares at a price of $81.8 per share. This was most likely part of the company’s 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.
Since the beginning of the year, Loar Holdings shares declined 10.73% and are now trading at $65.98 per share. Since the company’s initial public offering in April 2024, Loar Holdings returned 35.20% to its investors.
Recently, Loar (NYSE:LOAR) entered into a put option agreement to acquire 100% of the shares of LMB Fans & Motors (“LMB”) for €365 million ($397.71 million) plus the assumption of net debt, payable in cash at closing.
The consensus rating on Loar Holdings stock from four analysts is “Strong Buy,” according to StockAnalysis. The average price target of $83.4 suggests a 27.13% upside from the latest price.
Overall, LOAR ranks 6th on our list of stocks with the most insider sales in the last quarter. 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.
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Disclosure: None. This article is originally published at Insider Monkey.