Top of the stocks: Most bought and sold shares in February

February may be the shortest month of the year but felt somewhat never-ending, from the growing threat of a global trade war to a distinctly frosty meeting between Trump and Zelensky. Meanwhile Elon Musk channelled his inner Eminem by wielding a chainsaw on stage (apparently to symbolise DOGE spending cuts) but seemingly didn’t get the memo on wearing a suit either.

On the markets, the UK outshone its Atlantic cousins once again, with the FTSE 100 hitting another record high and closing the month up 2%, bringing its year-to-date gain to 7%. The defence sector continued to benefit from an expected increase in military spending across Europe and the UK found itself in a strategic sweet spot amid a brewing European-US stand-off (well, for now at least).

At the other end of the seesaw, the S&P 500 slipped by a similar margin, weighed down by weaker-than-expected economic data, turmoil around tariffs and a pullback in the share price of bellwether stock NVIDIA.

With that in mind, let’s see how UK investors navigated the stormy seas in February…

Top 10 most bought and sold shares in February

Investors load up on UK equities

Fears that the US gravy train may be running out of steam ushered in a distinctly homegrown flavour to buy lists in February. While NVIDIA took top honours for the second month in a row, Rolls-Royce soared into second place and defence play BAE Systems also made its debut.

The poster child of the S&P 500, NVIDIA (NVDA), received a lukewarm reception to its fourth-quarter results with its share price subsequently falling by 15%: it seems that beating punchy market forecasts is, in the words of The Greatest Showman, never enough. That said, UK investors clearly think there’s more to play for, with its 70%-plus year-on-year income growth putting the rest of the Magnificent Seven in the shade.

Rolls-Royce (RR) made its seventh consecutive appearance on the most-bought list as its share price reached yet another record high. Put into perspective, it’s one-year share price increase of 110% is three times higher than NVIDIA’s. The return of dividends and a £1 billion share buyback on the slate for 2025 provided further cheer for income-seeking investors.

The company’s latest results, with double-digit revenue growth across its three core divisions, and upgraded forecasts allayed fears that its recovery story might lose momentum. With around a quarter of its revenue coming from defence contracts, Rolls-Royce is also well-positioned to benefit from increased military spending, particularly in combat aircraft and nuclear submarines.

However, it was a month to forget for Tesla (TSLA), which shed 30% on a wave of bad news, including a 50% year-to-date slump in sales to China and a similar decline in Europe. Musk’s foray into politics also weighed on investor sentiment, with bumper stickers emblazoned with “I bought this before Elon went crazy” apparently selling like hot cakes on Amazon.

Unfortunately for Tesla, the wheels appear be coming off. Competition from cheaper Chinese models continues to erode its market share, and while the launch of a more affordable model could provide a fillip to revenue, its lofty valuation continues to look divorced from underlying fundamentals.

Finally, two quick mentions for the new entrants on this month’s buy list. Continuing the defence theme, investors flocked into BAE Systems (BA.) as European governments face mounting pressure to hike military spending. While its share price dipped mid-month after results briefly tempered investor enthusiasm, it’s subsequently continued its upward march to hit a record high.

Meanwhile, shares in John Wood (WG.) plunged to an all-time low in February after the old-school engineering company announced negative free cash flow in 2025. This caught the eye of bargain-hunters with the share price bouncing on news of a fresh approach from Dubai-based Sidara, though it remains at a rock-bottom valuation.

Investors cash in some of their biggest gains

Turning to sell-lists, Lloyds, Rolls-Royce and Palantir Technologies continued to feature highly as investors indulged in some profit-taking.

Lloyds (LLOY) was the most-sold share for the second month on the trot as investors locked in a 30%-year-to-date increase. Its latest results revealed a fall in profit, largely due to over £1 billion in provisions for the ongoing legal case around mis-sold car finance but there’s potential upside if the bank can balance higher interest rates with managing bad debts.

Palantir Technologies (PLTR) smashed its latest quarterly earnings forecasts, offering investors an alternative AI play to NVIDIA (though at an even richer valuation). However, there may be choppier waters ahead as investors digest how a pullback in US defence spending could play out for the company given that the US government accounts for over 40% of revenue.

Finally, investors flocked out of some of the big UK blue-chips including BP (BP), Legal & General (LGEN) and GSK (GSK).

Top 5 most bought investment trusts in February

Once again, global strategies had the seal of approval from investors, with Scottish Mortgage pushing JPMorgan Global Growth & Income into second place.

The managers of Scottish Mortgage (SMT) provided some interesting insights into the trust’s positioning, particularly around the Magnificent Seven, in their recent webinar. The trust has significantly reduced its stake in Tesla, with Tom Slater citing a “very strong appreciation in the stock price through the back-end of last year without really any fundamental news or change.”

The managers also discussed how their returns are often driven by a small number of big winners such as NVIDIA. SMT originally invested just over £60 million in the company but has now taken £1.5 billion in profit (with £500 million still invested), as the managers don’t believe they “can continue to take the same level of supernormal profits out of the ecosystem” as AI becomes cheaper and more ubiquitous.

Sticking with the technology theme, Allianz Technology Trust (ATT) made its debut on the buy list, holding six of the Magnificent Seven in its top ten (the outlier is Tesla in case you’re wondering). Despite topping its AIC sector with a near-600% share price total return over the last decade, it’s still trading on an 8% discount which could provide an additional kicker to returns.

Elsewhere, the dual income and growth strategy of JPMorgan Global Growth & Income (JGGI)continued to prove popular with investors, alongside the multi-manager strategy of F&C (FCIT) and the dividend yield of Greencoat UK Wind (UKW).

Looking ahead

Uncertainty remains firmly on the menu as we head into March, with fears of a “Trumpcession” brewing as trade war concerns grow. If the US economy starts to lose steam, stretched valuations could start to buckle under pressure. On the other side of the pond, European and UK equities continue to trade at attractive valuations but remain vulnerable to tariffs.

On a more predictable note, the countdown is on for the end of the tax year. Investors have only a few weeks left to use or lose their ISA allowance so we’ve run the rule over our pick of the best ISA platforms. And, for investors looking to top up their pensions, we’ve just published our guide to the best SIPP providers which compares fees across the main platforms.

All data as at 04/03/2025 unless stated otherwise, returns based on share price total returns.

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