We recently compiled a list of the 10 Large-Cap Stocks Insiders Are Selling Recently. In this article, we are going to take a look at where Restaurant Brands International Inc. (NYSE:QSR) stands against the other large-cap stocks. We previously covered 10 Large-Cap Stocks Insiders Are Buying Recently.
Why should investors track insider moves? Is it a bad sign for the company when insiders sell their shares? Not necessarily; just like insider buying activity doesn’t always mean the stock is heading for growth. Both insider selling and buying can be driven by various motives, it’s important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions.
However, insiders or people in high positions within a company—such as executives and directors, often have precious insights into the company’s strategy, plans, next moves and initiatives. Sometimes, for example, when a CEO or CFO invests their own money to acquire company shares, it can signal strong confidence in the company’s potential.
Similarly, when insiders are selling their shares, it can sometimes mean that the management is losing confidence. On the other hand, it also happens that large shareholders just want to trim their holdings to more appropriate position sizes based on the risk/reward. Insiders can also decide to sell their shares due to personal financial reasons that have nothing to do with the company.
This means that both insider selling and buying can be driven by various motives, and therefore, any insider trading activity should be carefully analyzed only with other factors. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
To identify the 10 large-cap stocks insiders are selling recently, we considered only stocks with a market capitalization of more than $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders selling 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 close-up of a hamburger, french fries, and a soft drink, representing the fast food chain.
Restaurant Brands International Inc. (NYSE:QSR)
Number of Insiders Selling: 10
Market Capitalization: $28.861B
A quick-service restaurant giant, known for popular brands like Burger King, Popeyes, Firehouse Subs and Tim Hortons is the third large-cap stock with recent insider selling activity. This Canadian-American multinational fast-food holding company operates more than 30,000 restaurants across 120 countries and territories.
Over the past two months, 10 investors, including the CEO and CFO sold a total of $6.49 million worth of Restaurant Brands International shares at an average price of $67.05 per share. The stock is now trading at $67.10, having gone up 2.95% year-to-date.
For Restaurant Brands, 22 analysts have an average rating of “Buy,” data from Stock Analysis reveals. Their 12-month stock price target is $80.8, representing an increase of 20.80% from the latest price. KeyBanc revised its outlook for the stock, decreasing the price target from $80 to $78 while maintaining an Overweight rating on the stock. Restaurant Brands is also among Bill Ackman’s Stock Portfolio: Top 9 Stocks to Buy.
The company offers a 3.67% dividend yield and has been paying dividends for 10 consecutive years. For the full year 2024, Restaurant Brands reported $8.41 billion, an increase of 19.71% compared to the previous year’s $7.02 billion. Net income amounted to $1.45 billion, compared to $1.72 billion for the full year 2023.
Over the last five years, the company’s shares lost 0.68%.
Overall QSR ranks 4th on our list of the large-cap stocks insiders are selling recently. While we acknowledge the potential of QSR as an investment, 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 QSR 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. This article is originally published at Insider Monkey.
