Individual Investors Sell Stocks at Fastest Pace Since Early Pandemic
Retail investors are selling individual stocks at their fastest pace since the early days of the COVID-19 pandemic, according to Vanda Research. On Tuesday alone, they recorded a net $213 million in sales—largely concentrated in memory-related companies like Micron Technology (MU), Sandisk (SNDK), Seagate Technology Holdings (STX), and Western Digital (WDC). This marks the largest single-day selling of individual stocks since 2020. Despite increased volatility, investors are not entirely exiting equities. Instead, they're shifting toward diversified ETFs as a more defensive option. For example, on Tuesday, retail traders were net buyers of the Roundhill Memory ETF (DRAM), even though it has dropped nearly 38% in July following earlier gains. Vanda Research notes that this shift reflects growing caution among individual investors who are reducing exposure to volatile single stocks while favoring broader market vehicles. The behavior could leave high-momentum names vulnerable if earnings reports fall short of expectations.
Tickers: $DRAM $MU $SNDK $STX $WDC