Tech Giants Face Insider Selling: A Deep Dive into Amazon, Meta, and Intuitive Surgical
In 2024, three major stocks have seen the most insider selling: Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Intuitive Surgical (NASDAQ: ISRG). However, this presents a buying opportunity for investors. Each of these companies is a leader in its field, significantly influencing global technology and everyday life. This influence is expected to continue, propelling their long-term growth and boosting shareholder value.
Insider selling in these companies largely stems from share-based compensation. As their stock prices rise—over 100% in the past eighteen months, notably a 500% surge for Meta Platforms—insiders have opted to sell. This trend is expected to persist as prices remain attractive.
Meta Platforms is particularly noteworthy, with robust 2024 earnings reflecting the effectiveness of its investments and AI integration. Analysts predict that price targets for Meta could exceed $800 by 2025, marking a potential 35% increase from the 2025 opening price. The scale of insider selling is significant; ten insiders executed 185 sales in 2024, including high-profile sales by CEO Mark Zuckerberg and other executives. Despite this, insiders retain more than 13% of company shares, which provides a strong support base. Institutional ownership is also mixed but generally positive, especially towards the end of the year, bolstering confidence in the stock’s upward trajectory.
Amazon Leads in Insider Selling Volume and Value
Amazon topped the list in 2024 with over 44.4 million shares sold, amounting to nearly $8 billion. Tracking by InsiderTrades.com revealed 52 sales from 11 insiders, including founder Jeff Bezos and CEO Andrew Jassy. Though substantial, these sales raised no alarms, as the insiders still own more than 10% of the company.
In contrast to the insider selling, institutional activity has been bullish. Institutions have consistently bought Amazon shares throughout 2024, continuing into 2025, which supports the overall health of the stock. Analysts remain optimistic, rating Amazon as a Moderate Buy, with expectations of a 20% price increase next year.
Intuitive Surgical: A Stable Investment in Healthcare Technology
As a prominent player in the medtech sector, Intuitive Surgical is known for its advanced robotic surgical systems, particularly the da Vinci system. Demand has been rising, with both placements and surgical procedures increasing steadily. The company benefits from recurring revenue linked to usage, bolstered by its innovative use of AI in assisting surgical procedures.
Financially, Intuitive Surgical boasts strong cash flow, maintaining a solid balance sheet while continuing to invest in growth and research. The company holds cash equal to four times its liabilities, indicating a secure financial position. Following a 17% rise in equity for 2024, further gains in 2025 are anticipated.
Despite being the stock with the highest number of insiders selling—57 sales by 16 insiders including the CEO and CFO—Intuitive Surgical’s institutional backing has remained robust. Institutions have consistently purchased shares throughout 2024 and into early 2025, reflecting continued confidence among larger investors.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
