Dueling Insider Moves: Heavy Buying Here, Big Selling There

Key Points

• A private equity insider just spent millions on this building products stock that is up nearly 50% in less than two months.
• One of the biggest gainers in tech just saw its top leader sell more than $70 million worth of shares.
• These are notable bullish and bearish signals for investors.

Insiders have been making some notable moves when it comes to two stocks that are on the rise big-time. A large institutional investor is buying shares in one of these companies, showing confidence. On the flip side, a top name in tech is seeing major insider selling coming from the most important person at the company. Shares of this name are up more than 400% over the past 52 weeks.

Below, we’ll break down the insider trades happening in these two names and provide perspective on how bullish or bearish these signals are for investors.

REZI Sees Millions in Private Equity Buying

Resideo Technologies NYSE: REZI is a mid-cap building products stock that has soared recently. Since July 15, shares are up approximately 47%, and insiders are buying into the rally. Since July 25, major shareholder CD&R Channel Holdings II, L.P., has bought approximately $179 million worth of Resideo shares. Insider selling over that period comes in at just $4 million. CD&R is a private equity firm that owns over 10% of Resideo’s shares and likely knows the company inside and out.

Another CD&R investment, Foundation Building Materials (FBM), was recently bought by Lowe's Companies NYSE: LOW for $8.8 billion. FBM was originally taken private back in 2021 for just $1.4 billion, showing that the investment generated a massive return. Notably, CD&R did not join the investment until early 2024, meaning that they likely only captured a moderate portion of this return. However, FBM’s sale to Lowe's still demonstrates that CD&R has significant expertise when it comes to investing in the building materials industry.

FMB’s success raises the possibility that Resideo could also get bought out for much more than it is currently worth, which could be a huge win for shareholders. Overall, CD&R’s purchases of Resideo are a significant bullish signal. Even if the firm doesn’t get bought out, the fact that CD&R is pouring millions more into this stock is a positive sign.

APP CEO Sells with Shares Near Highs: A Warning Sign for Investors?

Indisputably one of the best-performing tech stocks in the market recently is AppLovin NASDAQ: APP. Shares are up nearly 48% in 2025 and up 444% over the past 52 weeks. On Aug. 29, shares of APP closed at nearly $479, only around 7% below their all-time high closing price. Interestingly, in the second half of August alone, MarketBeat data shows that a key insider has sold over $74 million worth of AppLovin shares. That insider is Arash Adam Foroughi, better known as Adam Foroughi, AppLovin’s co-founder and current Chief Executive Officer (CEO).

Even when CEOs make them, the market often dismisses insider sales as non-issues. They frequently participate in predetermined stock sales plans, known as 10b5-1 plans. This makes it hard to say that 10b5-1 sales are indicative of where an insider sees their stock going. However, looking into Foroughi’s recent SEC Form 4 filings reveals an interesting detail. Foroughi made not a single one of his August sales under a 10b5-1 plan.

Overall, the Form 4 filings show that the vast majority of Foroughi’s recent sales are discretionary, not predetermined. The average selling price among these sales was approximately $419. These two facts cast a bearish undertone around Foroughi’s sales, suggesting that he wants to take profits when shares are around that level. Foroughi also made over $30 million in discretionary sales in February at around $410. However, his over $60 million in discretionary sales in May came in around the $365 price level, pushing back on the idea that he sees the +$400 range as selling territory.

Overall, Foroughi’s recent APP sales are moderately bearish signals for investors. Foroughi still owns over 10% of APP’s equity, indicating that he is still bullish on the stock long-term. However, the MarketBeat-tracked consensus price target on APP of around $478 implies shares are fairly valued. That’s another key signal for investors to consider. AppLovin is making a push into e-commerce advertising. Success could be big for the stock, but it also introduces risk as the firm enters a new market. AppLovin has traditionally made all its hay from advertising within mobile games.

Insider Insight Is Key, But Not Gospel

These insider trades are interesting signals for investors to consider. However, they are not crystal balls. Understanding Resideo and AppLovin beyond these signals is key to making an informed investment decision.