Tuesday’s Insider Activity: Major Executives Unload Shares Worth $1B+

Investing.com - RBC Capital Markets has highlighted EssilorLuxottica as its top pick in the eyewear sector for 2026, citing strong growth prospects in a new research report released Tuesday.

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The investment bank expects eyewear momentum to continue in 2026 given accessible price points and significant category innovation, which would benefit EssilorLuxottica. RBC analysts forecast the company could sustain +10% revenue growth per year to its 2028 fiscal year, supported by its defensive optical revenue base, recovering sun category, and incremental growth in new categories.

In the wider fashion sector, RBC prefers LVMH and Burberry, noting that expectations of a return to positive growth are now embedded in market forecasts. The bank projects +5% luxury sector organic revenue growth for 2026, with stable margins for LVMH and expanding margins for turnaround stocks including Burberry .

Geopolitical uncertainty, including the trajectory of sweeping U.S. tariffs under President Donald Trump and sluggishness in the Chinese economy, has dented the luxury segment and clouded the outlook. Price hikes have also crowded out younger, but more culturally influential, shoppers, resulting in mounting inventory levels that have become a fresh headache across the industry.

Meanwhile, for sporting goods, where investor sentiment remains depressed following a difficult 2025 which saw a roughly 30% average decline in share prices, RBC expects next year’s World Cup soccer tournament to disproportionately benefit Adidas and Nike. Both companies are rated "outperform" by the bank, which cites attractive earnings growth potential given margin rebuild opportunities.

RBC’s earnings estimates for 2026 differ from consensus in several cases, with EssilorLuxottica 5% above consensus while forecasts for Adidas, LVMH, and several other luxury brands fall below market expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Citi analysts highlighted one stock they believe will post results “significantly above Consensus” when it reports fiscal first-quarter earnings on Dec. 17 after the close.

The bank expects soaring memory prices and strong AI demand to fuel an upside surprise for Micron Technology.

Citi analyst Christopher Danely said he anticipates a “significant beat and raise,” citing “unprecedented increases in DRAM pricing,” which the firm estimates rose 50% quarter-on-quarter in 4Q25, far above earlier expectations.

Citi added that Micron is “sold out of HBM in 2026” and is likely to receive “capital infusions from AI customers” as long-term DRAM supply contracts are negotiated across the sector.

Citi now expects F1Q26 revenue of $14.0 billion, up 24% sequentially and well ahead of Micron’s $12.5 billion guidance and the $12.59 billion Consensus estimate.

Danely’s EPS forecast of $4.07 also exceeds the $3.52 Wall Street expects, helped by stronger gross margins.

For the following quarter, Citi projects F2Q26 revenue of $17.0 billion, compared with Consensus at $13.2 billion, adding that its own $6.18 EPS estimate stands far above the $3.75 analysts expect.

“The AI food chain is negotiating long-term DRAM contracts which will result in large capital infusions,” Citi wrote, arguing this will help fund new fabrication facilities across the industry.

The bank lifted its full-year forecasts, raising FY26 sales from $64 billion to $68 billion and EPS from $21.54 to $24.51. Citi said its FY26 EPS estimate is 52% above Consensus, reflecting a much stronger pricing and demand environment than the market is modelling.

Citi reiterated Micron as a Buy and raised its price target to $300 from $275, calling the stock one of the clearest beneficiaries of accelerating AI-driven memory demand.

Investing.com -- Nextdoor Holdings Inc (NYSE:NXDR) stock soared 29.9% in premarket trading Wednesday after activist investor Eric Jackson published a detailed investment thesis on social media platform X, calling the neighborhood-focused platform "the most mispriced Agentic-AI platform of the 2020s."

Jackson, who founded EMJ Capital and previously led a successful retail activist campaign at Opendoor Technologies that saw shares rise from $0.50 to $8, outlined a bullish case for Nextdoor. He highlighted the company’s unique combination of "identity, trust, proximity, and AI" as key differentiators that the market has failed to recognize.

In his extensive analysis, Jackson argued that Nextdoor possesses a verified neighborhood graph with 100 million real users and zero fake identities - an asset he claims "took a decade to build" and "couldn’t be replicated with $10B and a thousand engineers." He emphasized recent operational improvements under CEO Nirav Tolia, including reduced spam alerts, improved revenue per employee, and positive EBITDA achievement.

Jackson compared Nextdoor to Reddit (NYSE:RDDT), suggesting that applying Reddit’s 14.6x forward revenue multiple to Nextdoor’s projected 2026 revenue would yield a fair value of approximately $11 per share today - significantly above Tuesday’s closing price of $2.01.

The activist investor outlined multiple potential revenue streams beyond advertising, including lead generation for local services and what he calls "Opportunity Alerts" - a new AI-powered commerce surface. In his most optimistic scenario, Jackson suggested Nextdoor could reach $5.7 billion in high-margin revenue by 2029, potentially valuing the company at $374 per share in a "power-law case."

Jackson has a track record of identifying undervalued platforms, including Carvana (NYSE:CVNA) before it rose from single digits to over $450 per share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com - Strong capital spending on artificial intelligence and adoption of the nascent technology should fuel stock gains in 2026, although the risks of a bubble remain, according to analysts at UBS.

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In a note to clients, the analysts including Mark Haefele said that AI and technology were key drivers of global equity markets throughout this year.

“The current boom has the potential to deliver the necessary productivity improvements to overcome historical constraints and help economies achieve their own type of escape velocity,” the analysts wrote.

“Whether this potential is realized will depend on investors’ willingness to keep funding AI, tech leaders’ ability to monetize innovation, and the world’s capacity to supply the energy needed to power it all.”

By 2030, the UBS analysts forecast that the AI ecosystem -- from data centers and cloud solutions to large-language models and consumer-facing applications -- could generate revenue of $3.1 trillion.

The rapid rise of AI is seen adding to the need for the electricity underpinning data centers, with the U.S. power demand for these sites alone anticipated to equal what Sweden currently consumes per year by 2030.

As a result, the power and resources sector is attracting strategic investor focus as higher demand fuels new capital investment across the electricity value chain, the UBS analysts flagged, adding that global grid spending is projected to reach around $500 billion next year.

But supplies of the raw materials crucial to running these data centers are tightening, they said.

Observers have also recently raised concerns over the sustainability of the AI boom, which has become marked by frothy tech sector valuations, circular AI industry dealmaking, and often debt-driven expenditures -- although those worries largely appeared to ease near the end of last month.

Against this backdrop, the UBS analysts recommended that investors emphasize both “regional and sectoral diversification.”

“Each region offers attractive opportunities in grid modernization, renewables, and critical materials, while diversification can reduce investor exposure to regional regulatory, supply, or idiosyncratic risks,” they wrote.

S&P 500 earnings per share growth is seen at 11% in 2025 and 10% in 2026, “supporting near-term upside,” the analysts said. They argued that, should AI “deliver on its promise,” markets have the potential to “grow into” their current heightened valuations.

Still, “an AI disappointment is a key risk,” they warned.

Investing.com -- HeartBeam Inc (NASDAQ:BEAT) stock surged 52.6% in premarket trading Wednesday after the medical technology company announced it received FDA 510(k) clearance for its 12-lead electrocardiogram (ECG) synthesis software for arrhythmia assessment.

The clearance follows a successful appeal of a previous Not Substantially Equivalent (NSE) determination by the FDA. HeartBeam’s patented technology allows patients to obtain clinical-grade ECG readings from home using a credit card-sized device that captures heart signals in three dimensions.

Unlike single-lead or 6-lead consumer devices, HeartBeam’s technology synthesizes a complete 12-lead ECG representation, which is then reviewed by a board-certified cardiologist. This advancement enables patients to record ECG data during actual cardiac events rather than waiting to visit a doctor’s office.

"This FDA clearance is a defining moment for HeartBeam, and the true beginning of our mission to revolutionize cardiac care," said Robert Eno, Chief Executive Officer of HeartBeam.

The company plans to initiate a limited U.S. commercial launch in the first quarter of 2026, targeting select concierge and preventive cardiology practices. HeartBeam also intends to pursue a heart attack detection indication and advance development of an on-demand 12-lead ECG extended wear monitor.

Dr. Robert A. Harrington, a member of HeartBeam’s scientific advisory board, noted that the technology addresses a critical challenge in cardiology by allowing patients to collect meaningful ECG data at the exact moment symptoms occur, enabling physicians to gain clearer understanding of patients’ conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- UBS initiated coverage of Zehnder with a Buy rating, saying that the indoor-climate solutions group is entering a period of structurally stronger growth supported by margin expansion and a more profitable business mix.

Shares in the company jumped more than 6% in Switzerland.

The bank set a price target of 91 Swiss francs and highlights Zehnder’s strategy to deepen its leadership in ventilation while gradually downsizing its lower-margin radiator division.

“With a clear growth strategy for Ventilation, we see Zehnder extending its market leadership in Europe and expanding into the U.S.,” UBS analysts Leonie Zirn and Patrick Rafaisz said in a note, with organic sales expected to rise 7.9% annually from 2025 to 2027.

A larger contribution from ventilation, combined with improving service revenues and efficiency gains, forms the crux of the margin story. UBS expects EBIT margins to rise from 7.1% in fiscal 2024 (FY24) to around 11% by FY29 as ventilation grows to about 70% of group revenue.

Service revenues, targeted to reach 15% of group sales by 2030, and cost savings in radiators are seen as incremental drivers.

UBS also expects the company’s returns to strengthen as cash flow improves and capex normalizes. After temporary dilution from acquisitions, Equity Free Cash Flow Return on Invested Capital (FCF ROIC) is projected to increase to roughly 15% by FY27, firmly covering the cost of capital.

A recovery in European residential construction beginning in late 2026 should reinforce the topline, with building permits and completions showing early signs of stabilization across Zehnder’s core markets.

Valuation is another part of the bull case. UBS notes that Zehnder trades at 10.9x FY26 EV/EBIT, roughly 40% below Swiss building-materials peers.

The analysts argue that current pricing implies only 2–4% annualised revenue growth and a 7–9% EBIT margin, well below the bank’s expectations.