In this article, we will take a detailed look at the 11 most expensive stocks insiders are buying recently. We previously covered the 10 cheapest stocks insiders are buying recently.
The broader market returned around 21% over the past 12 months, and it is also doing well this year. Since the beginning of the year, it has moved 3.45%. As the January effect starts to cool off, we thought it could be useful to look into some of the stocks that insiders have recently not been shy to spend money on. Instead of the standard P/E ratio, today we decided to focus on the average price per share.
Why are expensive stocks worth considering? High-priced stocks are often perceived as more reliable long-term investments due to the belief that their higher price reflects a history of strong performance and lower volatility. While in investing there is not a single rule that guarantees results, taking more factors into account, such as price, insider trading activity, recent results, analyst coverage, and recent company moves and strategies, might help.
Both insider selling and buying can be driven by various motives that’s why it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. Due diligence before any investment is of crucial importance. However, insider trading activity, combined with other relevant factors, can provide valuable insights into a company’s capabilities, helping investors make more informed decisions.
What are some of the most expensive stocks insiders have been buying over the last 30 days? To find out, we used Insider Monkey’s insider trading stock screener, focusing only on stocks where at least two insiders had purchased shares recently. From there, we ranked the 10 stocks with the highest average price per share.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
With each stock, we note the average price per share of these purchases and the stock’s market capitalization. Let’s take a look at the 11 most expensive stocks insiders have been buying recently.
A busy trading floor with brokers and traders looking at screens and making deals in the fixed income market.
11. PhenixFIN Corporation (NASDAQ:PFX)
Average price per share: $48.99
Market capitalization: $107.31 million
The eleventh priciest stock insiders have been purchasing lately is a business development company PhenixFIN. The New York-headquartered company is engaged in investing in privately negotiated debt and equity securities of small and middle-market companies. PhenixFIN mostly operates across the following industries: business services, oil and gas, building and real estate, aerospace and defense, automobile, healthcare, education and childcare, mining, telecommunications, retail stores, and more.
In February, two insiders acquired a total of $49,041 worth of PhenixFIN shares at an average price of $48.99 per share. The stock is currently trading at $53.13 per share, as it has gained 4.92% since the beginning of the year. Over the last 12 months, its shares grew 18.07%.
For the first quarter of the company’s fiscal 2025, PhenixFIN reported net investment income of $1.63 million, compared to $1.71 million in the same period last year. Total net realized gains amounted to $1.17 million, compared to $229,804 in the comparable period of fiscal 2024.
For the full fiscal 2024, the company disclosed net investment income of $4.73 million, compared to $6.51 million for the fiscal 2023. Total net realized gain for the year amounted to $7.29 million, compared to total net realized loss of $11.53 million.
The fair value of the company’s investment portfolio totaled and consisted of 43 portfolio companies, with three investments on non-accrual status valued at $1.5 million.
In October, the company acquired an 80% stake in The National Security Group, an Alabama-based insurance holding company.
“We are pleased with our performance in 2024 as we grew NAV per share 12%, from to per share,” stated David Lorber, CEO of the company. “We are also excited with the successful transaction with NSG and look forward to new avenues of growth. This acquisition marks a significant milestone for and aligns with our commitment to execute on our investment strategy.”
On February 6, the company’s board of directors declared a special dividend of $1.43 per share.
Currently, analyst coverage on PhenixFIN is limited, which could indicate an opportunity or a lack of broader market attention.
10. RCI Hospitality Holdings, Inc. (NASDAQ:RICK)
Average price per share: $50.77
Market capitalization: $474.99 million
RCI Hospitality Holdings is a publicly traded owner and operator of adult nightclubs and sports bar restaurants. It was founded in 1983 as Rick’s Cabaret International and went public in 1995. The company changed its name to RCI Hospitality Holdings in 2014. The Houston, Texas-headquartered company runs elegant gentlemen’s clubs with entertainers and exclusive restaurants.
Insider Monkey previously covered a bull case theory on this stock. In summary, the thesis praises the company’s strong shareholder value creation through share buybacks – RCI Hospitality Holdings retired 401,093 shares (around 4.5% of outstanding shares) as of August 2023. In September, the company raised its dividend payments by 16.7% to $0.07 per share. The bull case for nightclub operators also presents the launch of AdmireMe, a competitor to OnlyFans, which is expected to digitally expand the company’s operations.
In February, two insiders, including the president and CEO bought a total of around $60,487 worth of RCI Hospitality Holdings, for an average price of $50.77 per share. Out of the total amount acquired, the CEO, Scott Eric Langan, purchased 1,000 shares, increasing his holdings to 704,000 shares.
Since the beginning of the year, the stock lost 6.79% and is now trading at $53.57. Over the last 12 months, its shares dropped 4.10%.
One Wall Street analyst has a “Moderate Buy” rating on RCI Hospitality stock, and a 12-month price target of $98.00. This represents an increase of 82.94% from the previous price, according to data from TipRanks.
