What’s more, LNKD executives seem to agree with me, as they’ve been ditching the stock at alarming rates recently. Over the past six months, insiders have sold 2.7 million shares or 67% of the shares they held. That’s right, the company’s own executives have reduced their holdings in the stock by 2/3 in just six months. If that’s not a red flag, I don’t know what is.
Insiders are getting out of this stock, and you should to. LNKD has slowing growth, low profits, and no more market momentum to prop up the price.
Avoid These Funds
Investors should avoid the following ETFs and mutual funds as they allocate significant assets to LNKD and earn our Dangerous-or-worse rating.
- Dunham Focused Large Cap Growth Fund (DCFGX): 5.1% allocation to LNKD and Dangerous rating.
- Hennessy Technology Fund (HTCIX): 4.3% allocation to LNKD and Dangerous rating.
- Trust for Professional Managers: Geneva Advisors All Cap Growth Fund (GNVIX): 3.8% allocation to LNKD and Dangerous rating.
- First Trust Dow Jones Internet Fund (FDN): 3.2% allocation to LNKD and Dangerous rating.
- Columbia Select Large Cap Growth ETF (RWG): 3.2% allocation to LNKD and Dangerous rating.
- Calamos Mid Cap Growth Fund (CMXAX): 3.2% allocation to LNKD and Dangerous rating.
- Turner All Cap Growth Fund (TBTBX): 3.1% allocation to LNKD and Dangerous rating.
To protect your stock, ETF or mutual fund portfolios from other Dangerous stocks, click here.
Sam McBride contributed to this report.
Disclosure: David Trainer is short LNKD. David Trainer and Sam McBride receive no compensation to write about any specific stock, sector, or theme.
This article is brought to you courtesy of David Trainer from New Constructs.