Technology stocks rebounded strongly in 2023, delivering solid returns on a year-to-date basis. Taking advantage of this price appreciation, corporate insiders sold shares of (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META), according to our Insiders Trading Activity tool.
Before we move ahead, it is important to highlight that insider selling of stocks does not always indicate a bad sign. However, keeping a tab on insiders’ activities can help retail investors make informed investment decisions.
Coming back to tech stocks, the recent rally has already raised concerns about the valuation and the possibility of a downturn or a correction, especially amid a weak macro backdrop. Several top investment firms, including Morgan Stanley, have warned of a sharp pullback in shares of technology companies.
Whether tech stocks could witness a correction remains a wait-and-see story. However, retail investors should take caution due to recent insider selling, notable price appreciation, and warnings from market pundits.
Against this backdrop, let’s look at what TipRanks’ Insider Trading Activity tool indicates about these stocks.
What is the Prediction for Nvidia Stock?
Nvidia stock has gained about 164% year-to-date on the back of solid demand for its AI (Artificial Intelligence)-led chips. Our data shows that four insiders made five Sell transactions in NVDA stock. Meanwhile, three insiders sold shares of Nvidia in June.
Harvey Jones, director at Nvidia, recently sold shares worth 28.43M. Overall, corporate Insiders sold NVDA shares worth $70.7M in the last three months. Further, the stock has a negative signal from insiders.
Nonetheless, Wall Street analysts are bullish about NVDA stock. It has received 32 Buy and four Hold recommendations for a Strong Buy consensus rating. Meanwhile, analysts’ average price target of $449.92 implies 16.83% upside potential.
Is AAPL a Good Stock to Buy Right Now?
Like NVDA, insiders sold AAPL stock in the last three months. Per the Insider Trading Activity tool, six insiders sold AAPL stock in 12 transactions in May 2023. Additionally, it is worth mentioning that three insiders have conducted sell transactions thus far in June.
Overall, insiders sold AAPL shares worth $709K in the past three months, with Chris Kondo, its Senior Director of Corporate Accounting, selling shares of an estimated value of $708.98K last month.
While Apple stock has a negative signal from insiders, it commands a Moderate Buy consensus rating based on 23 Buy, six Hold, and one Sell recommendations. Analysts’ average price target of $186.53 implies 3.3% upside potential from current levels.
Is Microsoft a Buy, Sell, or Hold?
Insiders sold MSFT shares worth $15.6M in the last quarter. Three insiders sold MSFT stock in seven transactions in May 2023. Further, two insiders have made three sell transactions so far in June. MSFT has a negative call from our Insider Trading Activity tool.
While insiders reduced their exposure to MSFT stock, Wall Street analysts maintain their bullish view. It has received 30 Buy, four Hold, and one Sell recommendations for a Strong Buy consensus rating. Further, these analysts’ average price target of $344.30 implies 5.6% upside potential.
What is the Price Target for Meta?
Meta Platforms stock, which has gained about 120% year-to-date, also has a negative signal from insiders. Per the Insider Trading Activity tool, six insiders sold META stock in 12 transactions in May 2023. Meanwhile, its CTO, Andrew Bosworth, sold META stock worth 71.94K.
Overall, insiders sold META shares worth $8.9M in the past three months.
While META stock has a negative signal from insiders, it has a Strong Buy consensus rating based on 38 Buy and five Hold. Analysts’ average price target of $287.32 implies 8.6% upside potential from current levels.