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.
Disclosure
ChatGPT, the generative artificial intelligence (AI) chatbot from OpenAI, dazzled the world with its introduction and set off the next race in technology as enterprises big and small figure out how to take advantage of the new AI tech and develop their own generative AI applicati
U.S. stocks have defied fears of a recession, a banking crisis and soaring Treasury yields to rise 20% from their October lows - one definition of a bull market.
Open AI Chief Executive Sam Altman is set to meet with South Korean President Yoon Suk Yeol, as the country seeks to encourage domestic competitiveness in artificial intelligence.
The S&P 500 hit bull market territory this week from October lows, carried by a small number of mega-cap companies. Investors with an eye toward the concentration risk within broad equity exposure should consider managed futures for their low correlations to stocks and bonds. Many of the strongest-performing companies this year are tech companies. The [...]
Read more at ETFtrends.com.
Open AI Chief Executive Sam Altman is set to meet with South Korean President Yoon Suk Yeol and about 100 local startups on Friday, as the country seeks to encourage domestic competitiveness in artificial intelligence.
Facebook owner Meta Platforms on Thursday gave employees a sneak peek at a series of AI tools it was building, including ChatGPT-like chatbots planned for Messenger and WhatsApp that could converse using different personas.
Cohere, an AI foundation model company that competes with Microsoft-backed OpenAI, said on Thursday it had raised $270 million in a funding round from investors including Nvidia, Oracle and Salesforce Ventures.
ChatGPT and AI seem to be everywhere these days, but what do they really mean for asset management and financial advisors? Does AI arrive as just a theme, or can it really have an immediate impact on financial advisors’ work? On Wednesday, VettaFi’s Dave Nadig hosted a webcast on AI titled “Beyond Chat: How AI [...]
Read more at ETFtrends.com.
Energy stocks were mixed in late Thursday afternoon trading, with the NYSE Energy Sector Index almost flat and the Energy Select Sector SPDR Fund (XLE) down 0.4%.
The stock market moved sharply higher on Thursday, with the Nasdaq Composite (NASDAQINDEX: ^IXIC) picking up more than 1% shortly after noon. Despite lingering concerns about the state of the economy and the likely response of policymakers toward interest rates, investors appeare
Apple (
NASDAQ:AAPL
) stock is off to a gain of
over 40% year-to-date, and it has a coveted 'Perfect 10' TipRanks Smart Score. Excitement about the company’s newly-unveiled VR headset is starting to build. Even
Warren Buffett is a fan of the stock. Apple has been Berkshire Hathaway’s (
NYSE:BRK.B
) largest position for a long time. In fact, after its 2023 run-up, it currently accounts for nearly half of Berkshire’s equity portfolio.
Investors looking to invest in Apple through ETFs are in luck because Apple is the largest company in the world by market cap (with a $2.8 trillion valuation), and it isn’t hard to find ETFs with a large position in it. Therefore, without further ado, here are three of the top ETFs with Apple stock exposure.
1.
Vanguard Information Technology ETF (NYSEARCA:VGT)
Apple is the VGT ETF's top holding with a massive 23.5% weighting. Vanguard funds are known for their diversification, and aside from this large Apple position, VGT is no different. The $51.3 billion ETF holds 366 positions. Because it is a market-weighted ETF and Apple is the largest position in the index VGT tracks (the MSCI U.S. Investable Market Index (IMI)/Information Technology 20/50), Apple rises to the top with this large allocation.
Including Apple,
VGT’s top 10 holdings account for 63.9% of the fund. Below, you’ll find an overview of VGT’s top holdings using TipRanks’ holdings tool.
VGT’s underlying index is comprised of companies within the Global Industry Classification Standard (GICS) information technology sector, which includes software and IT services companies as well as makers and distributors of technology hardware such as semiconductors, cell phones, and computers. Therefore, it’s no surprise to see plenty of familiar mega-cap technology names within VGT’s top 10, whether it’s Apple, Microsoft (
NASDAQ:MSFT
), or Nvidia (
NASDAQ:NVDA
).
You may be surprised to find payment network giants like Visa (
NYSE:V
) and Mastercard (
NYSE:MA
) coming in as the number four and five positions in a technology ETF, but note these are also fintech companies pushing innovation in the finance space.
In the chart above, you’ll see plenty of bright green
Smart Scores. The Smart Score is TipRanks’ proprietary quantitative stock scoring system that evaluates stocks on eight different market factors. The result is data-driven and does not require any human intervention. A Smart Score of 8 or above is the equivalent of an Outperform rating. As you can see, VGT impresses in this department as nine of its top 10 holdings have Outperform-equivalent ratings. Furthermore, VGT itself features an ETF Smart Score of 8 out of 10.
VGT has been a strong performer over the years, and it is currently up 32% year-to-date. It has returned 16.5% over the past year, 17.8% annualized over a three-year time frame, and 19.1% annualized on a five-year basis. Further, VGT has returned 19.8% (annualized) over the past decade, and it’s hard not to be happy with that type of long-term return.
Another nice thing about VGT is its low fees. The ETF has an expense ratio of just 0.1%, meaning that an investor who puts $10,000 into the ETF will only pay $10 in fees in a year.
Is VGT Stock a Buy, According to Analysts?
Analysts are fairly positive on VGT, assigning it a Moderate Buy consensus rating. The
average VGT stock price target of $456.65 implies upside potential of 9.04% from current levels.
2.
Technology Select Sector SPDR Fund (NYSEARCA:XLK)
Like VGT, the Technology Select Sector SPDR Fund is a low-fee, index-based fund investing in the technology sector. In XLK’s case, it invests in the technology sector of the S&P 500 (
SPX
).
Similar to VGT, Apple has a massive position here with its 22.9% weighting, although it’s not XLK’s largest holding. That honor belongs to Microsoft, which edges Apple out for the top spot with a 24.3% weighting. XLK holds far fewer stocks than VGT. It currently holds 65 stocks, and its top 10 holdings make up 71.6% of the fund. See below for an overview of
XLK’s top holdings.
You’ll notice that beyond Apple and Microsoft, XLK and VGT share many of the same top holdings. One notable difference is that while VGT owns large positions in Visa and Mastercard, these stocks are not found in XLK as they are not part of the S&P 500 technology sector -- they are part of the S&P 500 financial sector and can thus be found in the
Financial Select Sector SPDR Fund (
NYSEARCA:XLF)
.
As with VGT, you’ll find plenty of great Smart Scores here -- 8 out of XLK’s top 10 holdings feature Smart Scores of 8 or better, and XLK itself boasts a strong ETF Smart Score of 8 out of 10.
XLK offers the same investor-friendly expense ratio as VGT (0.1%), and it also boasts a great track record of long-term performance like VGT. XLK is up 33% year-to-date, and it returned 7.7% over the past year. It has been very consistent on an annualized basis, with total returns of 19.2% annualized over the past three years, 19.5% annualized over a five-year time frame, and 18.9% over the past decade. These are the types of results that help investors to build wealth over the long run.
Is XLK Stock a Buy, According to Analysts?
The consensus analyst view on XLK is fairly similar to that of VGT -- a Moderate Buy rating with an
average XLK stock price target of $175.67, implying upside potential of 6.8%.
3.
Invesco QQQ Trust (NASDAQ:QQQ)
Lastly, the Invesco QQQ Trust ETF has become synonymous with technology stocks over the years, so it’s no surprise that it has a large Apple position. At 12.1%, QQQ’s Apple weighting is smaller than that of VGT’s or XLK’s, but this is still a sizable position in the grand scheme of things. Microsoft is ahead of Apple by a narrow margin with a 13.2% weighting. Check out the table below for a look at
QQQ’s top holdings.
Because QQQ's underlying index is the Nasdaq 100 (
NDX
), you’ll find that this list is dominated by the mega-cap tech names like Microsoft, Apple, Amazon (
NASDAQ:AMZN
), Nvidia, Meta Platforms (
NASDAQ:META
) and Alphabet (
NASDAQ:GOOGL
) (
NASDAQ:GOOG
) that the Nasdaq is known for.
You may notice that names like Amazon and Tesla (
NASDAQ:TSLA
) are included here but absent from XLK, as it considers them to be consumer stocks. These stocks are not found in VGT’s underlying index either.
Pepsi (
NASDAQ:PEP
) is a notable outlier here, as it is clearly not a tech stock, but it is one of the largest stocks on the Nasdaq 100, so it makes the cut.
QQQ comes in a bit behind XLK and VGT in that six of its top 10 holdings have Smart Scores of 8 or above (as opposed to nine out of 10 for XLK and eight out of 10 for VGT). Nonetheless, QQQ itself features a strong ETF Smart Score of 8.
QQQ's expense ratio is higher than that of VGT or XLK at 0.2%, but this is still an investor-friendly expense ratio, and it is still a lower fee than you will find with many other ETFs out there.
Like the other two funds discussed here, QQQ is another long-term winner. As of the end of the most recent quarter, the Nasdaq-focused ETF has returned 32% year-to-date. Moreover, it has posted annualized total returns of 19.8% over the past three years, 15.7% over the past five, and 17.7% over the past 10 (as of March 31).
Is QQQ Stock a Buy, According to Analysts?
Analysts also rate QQQ a Moderate Buy at current levels and see it as having similar upside potential of 9.5% based on the
average QQQ stock price target of $385.11.
Closing Thoughts
It's hard to go wrong with any of these three ETFs, and in many ways, they are very similar. QQQ is slightly different in that it offers lower exposure to Apple (although it still gives investors double-digit exposure) and features more of the typical mega-cap tech and FAANG names that many investors likely associate with Apple.
Meanwhile, these types of other names are not as prominent (or are missing altogether) from VGT and XLK, but they both give you Apple exposure of roughly 20% and similar stakes in Microsoft. QQQ features a higher expense ratio than VGT or XLK, but it is still a moderate expense ratio.
All three of these tech-focused funds offer investors significant exposure to Apple, and all three have impeccable long-term performance track records. Furthermore, they all feature low expense ratios. For investors with a long time horizon and an interest in Apple as well as its tech peers, these ETFs look well-positioned to continue providing solid long-term returns.
Disclosure
Energy stocks were mostly declining on Thursday afternoon with the NYSE Energy Sector Index falling 0.2% and the Energy Select Sector SPDR Fund (XLE) down 0.5%.
Datadog DDOG recently announced new capabilities for its Cloud Cost Management product, including container cost allocation and cost monitors. It extends the collaboration with Microsoft MSFT by providing Cloud Cost Management sup
Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the SPDR Portfolio S&P 500 Growth ETF, where 14,150,000 units were destroyed, or a 4.7% decrease week over week. Among the largest underlyi
The S&P 500 and Nasdaq were set to open slightly higher on Thursday as Treasury yields slipped after data showed weekly jobless claims rose more than expected, countering some concerns about further interest rate hikes.
Below is Validea's guru fundamental report for MICROSOFT CORP (MSFT). Of the 22 guru strategies we follow, MSFT rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental moment
Small-caps can typically give traders amplified moves to the upside versus large-caps, but big tech specifically has been winning the market capitalization battle in the current rally. More specifically, the Direxion Daily Technology Bull 3X ETF (TECL) is up almost 120% versus the Direxion Daily Small Cap Bull 3X Shares (TNA), which is eking out [...]
Read more at ETFtrends.com.
Worries that have dogged U.S. stocks for months are fading, pushing some Wall Street firms to raise their outlooks for equities and beckoning investors who have remained on the sidelines.