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 Hewlett Packard Enterprise Company (NYSE:HPE) 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 woman programmer in a modern office working with multiple computer servers.

Hewlett Packard Enterprise Company (NYSE:HPE)

Number of Insiders Selling: 9

Market Capitalization: $28.095B

In the middle of this list of 10 large-cap stocks insiders have been ditching lately is a well-known provider of enterprise technology solutions, including servers, storage and networking products, Hewlett Packard Enterprise Company. The company was founded in 2015, in Palo Alto, California, as part of the splitting of the Hewlett-Packard company.

Over the last two months, as many as nine insiders sold a total of $18.30 million worth of Hewlett Packard Enterprise Company shares at an average price of $22.13 per share. Its shares are now trading at $21.18 per share, having declined 0.80% since the beginning of the year.

The company recently hit the headlines, with reports that it has joined forces with Advanced Micro Devices and Nvidia and held discussions with the Indian government. The talks focused on developing a graphics processing unit that would play an important role in helping accelerate the growth of India’s AI sector. This news lands it on our list of 8 AI Stocks Sending Shockwaves on Wall Street Following DeepSeek Scare.

On January 30, the Justice Department sued to block Hewlett Packard Enterprise’s proposed $14 billion acquisition of rival wireless local area network (WLAN) technology provider Juniper Networks. The suit alleged that the proposed transaction would eliminate strong competition between the companies, which would result in higher prices, less innovation and choice for American businesses and institutions. This week, Hewlett Packard Enterprise denied the allegations, arguing that there are more than eight companies offering wireless networking solutions in the U.S., other than Juniper and HPE.

Data from StockAnalysis shows that 14 analysts have an average “Buy” rating for the stock. The 12-month stock price target is $24.

Over the last five years, Hewlett Packard Enterprise shares returned 44.94% to its investors.

Overall HPE ranks 5th on our list of the large-cap stocks insiders are selling recently. While we acknowledge the potential of HPE 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 HPE 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.