Insights on Stock Trading by Top Fund Managers
Every now and then, we take a deep dive into the stocks that some of the most renowned fund managers are trading. Who are these managers? They’re active managers whose funds are recognized within Morningstar’s large categories, boasting medalist ratings that are above Bronze. Notably, their portfolios consist of fewer than 50 stocks. Each quarter, we compile their buying and selling habits.
What Top Managers Are Selling
Today, let’s focus on three stocks that these managers are scaling back in 2025.
Three Overvalued Stocks Being Sold by Top Managers in 2025
- Netflix (NFLX)
- MasterCard (MA)
- Stryker (SYK)
First up is Netflix. It’s the leading player in streaming globally, and one would hope it maintains that edge. I suppose Netflix has effectively carved out a narrow economic moat, suggesting it can stay competitive for over a decade? Unlike many of its competitors, Netflix doesn’t carry legacy assets that depreciate in value, which allows for a stronger focus on its core offerings. Plus, it was the pioneer in streaming, giving it a substantial first-mover advantage in subscriber gains. There’s a lot to appreciate, but despite all that, analysts deem Netflix as overvalued, with an estimated worth of around $720 per share.
The next stock on this list is MasterCard. Being the second largest payment processor worldwide, MasterCard has indeed established a broad economic moat through a global electronic payment infrastructure that is quite tough to penetrate. We’re witnessing a continuous shift towards electronic payments—whether they’re credit, debit, or mobile. Of course, an economic downturn might slow down growth, yet we don’t anticipate any significant industry trends that would hinder MasterCard’s ability to sustain double-digit growth in the near future. Still, its current valuation feels high, and I think MasterCard shares should be around $500.
Lastly, we have Stryker, a major player in the medical device manufacturing space across various appealing medical sectors, including orthopedic implants and surgical instruments. The company’s confidence lies in its broad economic moats and its reputation for innovation. While there’s a lot to like about Stryker, inventory levels are concerning. Analysts put Stryker’s stock at approximately $306, which seems to be a significant overvaluation.
For deeper insights into these stocks, you can check out the complete reports on Netflix, MasterCard, and Stryker.
