3 Stocks Institutions Are Quietly Dumping

Institutional Selling Trends - Institutional buyers are highly aware of market conditions, employing numerous analysts and portfolio managers to monitor global markets continuously [1] - A shift in institutional flows can significantly impact retail portfolios, indicating when to increase or decrease market exposure [2] - Recent volatility in the S&P 500 has led institutions to sell off cyclical and consumer discretionary stocks, suggesting worse economic conditions than anticipated [2][4] Impact on Consumer Discretionary Sector - The Consumer Discretionary Select Sector SPDR Fund (XLY) and individual stocks like Progressive Co. and Booking Holdings have been affected by institutional selling [3][4] - In February 2025, retail sales data indicated a significant pullback in consumer spending, prompting institutions to act before potential losses [5][6] - Up to $3.5 billion was withdrawn from the consumer discretionary ETF, with Northern Trust being a major seller [6] Forecasts and Earnings Projections - The 12-month stock price forecast for the Consumer Discretionary Select Sector SPDR Fund is$198.33, based on 1,031 analyst ratings [4] - Progressive's stock forecast indicates a slight downside of -0.77%, with a projected EPS decline from $4.08 to$2.74 for Q3 2025 due to reduced consumer spending on cars and homes [8][12] - Booking Holdings is projected to experience a nearly 50% decline in EPS for Q1 2025, with significant institutional selling amounting to $210 billion [13][14] Market Sentiment and Analyst Ratings - The short interest in Booking stock has increased by 6.5%, reflecting bearish sentiment regarding future earnings [13] - Despite a Moderate Buy rating for Booking, top analysts suggest alternative stocks may offer better investment opportunities [15]