In this article, we will take a closer look at: Latest Insider Sales: 10 Large-Cap Tech Stocks to Watch. Check out our article for an overview of 5 such stocks. Latest Insider Sales: Five Large tech stocks to watch.
Large-cap technology stocks have been the biggest beneficiaries of the AI revolution, which apparently has no end in sight, as companies continue to develop innovative AI solutions.
But some analysts believe valuations for large-cap tech stocks are overextended and need a breather. They urge investors to look beyond large-cap tech stocks and focus on AI pick-and-shovel efforts that play a critical role in the development, deployment, and use of generative AI applications. And these companies have seen a rapid rise in investor sentiment over the past few months. State Street Global Advisors said in a January report that its SPDR NYSE Technology ETF (XNTK), which includes 35 U.S. stocks, has outperformed the S&P 500 tech sector and the S&P 500 index by 6% and 9% since June. It was announced that So far this year, the ETF is up about 14.2%, outpacing the S&P 500's gain of about 10.6%. XNTK's benchmark profit estimates have been raised by 10% since June, the report said.
In its latest market commentary published on March 25, BlackRock said that despite the high valuations of some technology stocks, it believes the overall market backdrop remains positive, so it believes that U.S. stocks, especially A.I. He said he remains overweight in related stocks. BlackRock, citing Bloomberg data, said tech companies are expected to account for nearly half of the S&P 500's total profits this year.
BlackRock also dismissed the idea that the current rally in tech stocks resembles the dot-com bubble.
“To compare periods, BlackRock's Systematic Equities team analyzed 400 indicators related to valuations and other characteristics and found that the number flashing red now is 50% lower than it was during the dot-com bubble burst in 2000. % was found to be low.
However, BlackRock cited several scenarios that could change market theory. If inflation remains subdued in the short term but recovers later, he thinks the Fed could settle for a long-term scenario in which interest rates remain high.
“Sustained inflationary pressures from great powers, or major structural changes that bring benefits, also require higher neutral interest rates than in the past, rates that do not stimulate or restrict economic activity. We think the adjustment is starting to reflect our view that interest rates will remain higher for an extended period of time than before the pandemic. The market is not paying attention to that outlook so far. Second, margins. As pressures increase, stock prices may become more sensitive to macro news.
Against this backdrop, it might be interesting to see which large-cap stocks company insiders are selling. In this article, we used Insider Monkey's Insider Trading Stock Screener to find large-cap tech stocks that have seen insider selling activity over the past few weeks. But why is it important to monitor hedge fund and insider activity? The top 10 consensus stocks chosen by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail).
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10. MicroStrategy Inc (NASDAQ:MSTR)
Number of hedge fund investors: 16
Michael Saylor, executive chairman and 10% owner of MicroStrategy Inc (NASDAQ:MSTR), has been rapidly selling his shares in MicroStrategy Inc (NASDAQ:MSTR) over the past few months. On March 22nd, Thaler sold 5,000 shares of MicroStrategy Inc (NASDAQ:MSTR) stock. On March 21, the former CEO of MicroStrategy Inc (NASDAQ:MSTR) sold 1,260 shares of MicroStrategy Inc (NASDAQ:MSTR) for $1,680.49 per share. Since March 21, the stock has increased about 16%.
At the end of Q4 2023, 16 hedge funds out of 933 hedge funds tracked by Insider Monkey held shares in MicroStrategy Inc (NASDAQ:MSTR). The most important stakeholder in MicroStrategy Inc (NASDAQ:MSTR) during this period was Dmitry Balyasny's Balyasny Asset Management, which owns an $18 million stake in MicroStrategy Inc (NASDAQ:MSTR).
At last month's earnings conference, the company talked about its focus areas in 2024 as follows:
“In 2024, we will continue our transformational focus on the decline and growth of AI and BI while accelerating our transition to a cloud-centric operating model. It's about innovating with AI and increasing profitability. So let me start by talking about growth with the cloud. MicroStrategy Cloud is an R&D effort to extend the flexibility, scalability, and security of the platform. In December, we successfully rolled out Google Cloud platform integration to enhance our multicloud capabilities, giving our customers greater options.The product is microservices and container-based. Yes, and uses the latest cloud innovations. Today, MicroStrategy can be deployed and fully hosted on Azure, AWS, and GCP.
In addition, later this year we will be offering the ability to automate MicroStrategy deployments in private clouds, with many of the same benefits as in public clouds. This differentiates it from other BI platforms with the flexibility and automation that enterprise customers require. These investments and capabilities will enable today's on-premises customers to take advantage of MicroStrategy Cloud's containerized architecture, proactive cloud management by experts, seamless backups, and one-click updates. We think it's deaf. Moving our customer base to the technologies of the future remains a key focus, and our resource deployment underscores our commitment to a cloud-first approach. A decline in product license revenue is expected as customers and prospects move to the cloud to power his AI-driven digital transformation.
This will be partially offset by growth in subscription services revenue in the same year and further offset by growth in recurring revenue in subsequent years. This will be most noticeable in his 2024 as the pace of cloud adoption is expected to accelerate. By moving your customers and prospects to the cloud, not only will you have healthier recurring revenue, you'll have more engaged and satisfied customers using our latest software, resulting in higher retention rates. Masu. His second focus area for our software business is innovation through AI. ”
Read the full earnings call here.
9. F5 Inc. (NASDAQ:FFIV)
Number of hedge fund investors: 29
Frank Pelzer, executive vice president and chief financial officer of cloud security company F5 Inc. (NASDAQ:FFIV), purchased 500 shares of F5 Inc. (NASDAQ:FFIV) stock on March 20th at a price of $189.12 per share. Sold. Since then, the stock price has fallen about 0.5%.
8. Akamai Technologies, Inc. (NASDAQ:AKAM)
Number of hedge fund investors: 37
Cloud security services company Akamai Technologies (NASDAQ:AKAM) is one of the large-cap technology stocks that insiders are touting. His COO of Akamai Technologies Inc (NASDAQ: AKAM) Adam Karon sold 14,349 shares of Akamai Technologies Inc (NASDAQ: AKAM) stock on March 22nd at a price of $109.78 per share. Since then, the stock price has been flat.
Paul Joseph, Vice President of Global Sales and Services, sold 34,595 shares of Akamai Technologies Inc (NASDAQ:AKAM) stock on March 15, 2023 for $108.09 per share.
7. HP Inc (NYSE:HPQ)
Number of hedge fund investors: 50
Robert R. Bennett, Director of HP Inc (NYSE:HPQ), sold 67,000 shares of HP Inc (NYSE:HPQ) stock on March 21 at a price of $30.01 per share. In another insider selling transaction dated March 8, HP Inc (NYSE:HPQ) Senior Vice President and Financial Controller Stephanie Liebman sold 8,708 shares of HPQ stock at a price of $30.93 per share. Since March 8, the stock has fallen 2.8%.
At the end of the last quarter of 2023, 50 hedge funds out of 933 hedge funds tracked by Insider Monkey held shares in HP Inc (NYSE:HPQ). The largest stake in HP Inc (NYSE:HPQ) belongs to Warren Buffett's Berkshire Hathaway, which owns $688 million in HP Inc (NYSE:HPQ) stock.
In its latest earnings call last month, the company said the following about its guidance:
“While we expect second-quarter consumables revenue to be down mid-single digits excluding the impact of foreign exchange, we still expect full-year consumables revenue to be down low to mid-single digits. Quarterly results may vary.Print margins for the second quarter are at the high end of the 16%-19% range for sales, firmly within the FY24 range. We remain focused on increasing print operating income through our business model and rigorous cost management, including future-ready transformation savings. With these considerations in mind, we expect We provide the following guidance regarding second quarter non-GAAP diluted net income per share in the range of $0.76 to $0.86 and second quarter GAAP diluted net income per share of $0.58. It ranges from $0.68 to $0.68.
The Company expects 2024 non-GAAP diluted net income per share to be in the range of $3.25 to $3.65 and 2024 GAAP diluted net income per share to be in the range of $2.61 to $3.01. . Finally, we began the new fiscal year with steady progress against our strategic objectives and full-year commitments, while addressing the continuing demands and competitive challenges of today's dynamic environment. ”
Please read the full text of the financial results conference here.
6. Dell Technologies Inc (NYSE:DELL)
Number of hedge fund investors: 56
Dell Technologies Inc (NYSE:DELL) has seen heavy insider selling activity this year. His CEO of Dell Technologies Inc (NYSE: DELL), Michael Dell, sold 1.34 million shares of Dell Technologies Inc (NYSE: DELL) on his March 14th price of $107.72 per share. . On March 19, he sold 2,977,478 shares of Dell Technologies Inc (NYSE:DELL) for $108.52 per share. Since then, the stock price has fallen about 5% through March 25th.
At the end of the last quarter of 2023, 56 hedge funds out of 933 hedge funds tracked by Insider Monkey held shares in Dell Technologies Inc (NYSE:DELL). The largest stakeholder in Dell Technologies Inc (NYSE: DELL) was Panayiotis Takis Sparagis' Alkeon Capital Management, which owns $383 million in Dell Technologies Inc (NYSE: DELL) stock.
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Disclosure. none. Latest Insider Sales: 10 Large-Cap Tech Stocks to Watch Originally published on Insider Monkey.
