Over the last year, there was a significant rebound in stocks as concerns about an impending recession subsided and the economy turned out to be more resilient than many had expected. Capitalizing on this uptrend in prices, corporate insiders sold shares of Walmart (NYSE:WMT), Intuitive Machines (NASDAQ:LUNR), and Eli Lilly (NYSE:LLY), according to the TipRanks Insiders Trading Activity tool.
But before moving ahead, it is important to highlight here that when corporate insiders sell stocks, it doesn’t always indicate a negative signal. However, keeping track of insiders’ activities enables investors to make sound investment decisions, especially if these trades are informative. Notably, TipRanks scans SEC filings to decide whether insider trades are informative or uninformative and displays that data on Insider Trading pages. Informative Buy-or-Sell transactions reflect insiders’ sentiments and typically demonstrate higher predictive capabilities.
With this background, let’s dig deeper to see the recent insider transactions on WMT, LUNR, and LLY stocks.
Is Walmart a Buy or Sell Right Now?
Walmart stock has gained over 26% in one year and is trading close to its all-time high. Our data shows that the members of the Walton Family, including Jim Walton, Alice Walton, and Robson Walton, made Informative Sell transactions in WMT stock last week.
Jim, Alice, and Robson, each holding more-than-10% stake in WMT, divested stock worth $1.54 billion, $1.55 billion, and $1.55 billion, respectively. Moreover, David Chojnowski, senior vice president and controller of Walmart, sold shares worth $0.64 million. Overall, corporate Insiders sold WMT shares worth $7 billion in the last three months. Further, the stock has a Very Negative signal from insiders.
While WMT stock has a Very Negative signal from insiders, Wall Street is optimistic about the retailer. WMT stock has received 24 Buys and three Holds for a Strong Buy consensus rating. Analysts’ average price target of $64.78 implies about 8.7% upside potential from current levels.
Is LUNR a Buy or Sell?
Shares of the space exploration, infrastructure, and services company Intuitive Machines are up about 145% year-to-date, getting a boost from the historic landing of its Odysseus spacecraft on the Moon. Per the Insider Trading Activity tool, one insider sold LUNR stock in February 2024.
Guy Shanon, who owns a more-than-10% stake in LUNR, sold 360,000 shares worth $4.1 million last week. Given the informative sell transaction, the stock has a negative signal from insiders.
Nonetheless, Intuitive Machines stock has three unanimous Buy recommendations from Wall Street analysts for a Strong Buy consensus rating. Further, their average price target of $14 implies a further upside potential of 123.29% from current levels.
What is the Prediction for Eli Lilly Stock?
Shares of the pharmaceutical company Eli Lilly have gained nearly 33% year-to-date. Moreover, LLY stock is up about 146% in one year due to optimism over its diabetes and obesity products. Per the Insider Trading Activity tool, Lilly Endowment made five informative sell transactions in February 2024. Lilly Endowment sold LLY shares worth $380.92 million in February.
Overall, corporate Insiders sold LLY shares worth $607.7 million in the last three months. Further, the stock has a Negative signal from insiders.
However, analysts maintain a bullish stance on LLY stock as the company’s weight loss and diabetes drugs could add billions to its top line in the coming years. With 16 Buy and three Hold recommendations, Eli Lilly stock has a Strong Buy consensus rating. The average LLY stock price target of $7902.61 implies 2.42% upside potential from current levels.
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