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 Rockwell Automation, Inc. (NYSE:ROK) 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 technician in a factory setting next to an industrial automation machine.
Rockwell Automation, Inc. (NYSE:ROK)
Number of Insiders Selling: 13
Market Capitalization: $30.234B
Rockwell Automation is a provider of industrial automation and digital transformation solutions. On February 4, the company confirmed the deepening of its long-standing partnership with FORTNA. The company’s brands include Allen-Bradley, FactoryTalk software and LifecycleIQ Services. Rockwell Automation operates in more than 100 countries across the globe.
Over the past 12 months, 13 insiders, among which are President and CEO, CTO, and CIO sold a total of approximately $2.43 million worth of Rockwell Automation shares at an average price of $297.49 per share. Since the beginning of the year, the company’s shares went up 5.88%, now trading at $302.60 per share.
As many as 17 analysts have an average “Buy” rating on the Rockwell Automation stock. The 12-month stock price target is $303.59, representing an increase of 0.79% from the latest price, writes StockAnalysis.
For the first quarter of fiscal 2025, Rockwell Automation reported sales of $1.89 billion, down 8.4% from the first quarter of fiscal 2024. Net income attributable to Rockwell Automation was $184 million or $1.61 per share, compared to $215 million or $1.86 per share in the first quarter of fiscal 2024. The company attributes the decrease in net income to lower sales volumes.
Rockwell Automation is also one of the Top 9 Game-Changing Stocks for AI Revolution. Over the last five years, the company’s shares gained 51.13%.
Overall ROK ranks 1st on our list of the large-cap stocks insiders are selling recently. While we acknowledge the potential of ROK 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 ROK 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.
