We recently compiled a list of the 11 Most Expensive Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where Ashland Inc. (NYSE:ASH) stands against the other expensive stocks. 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.
A technician filling bottles with nature-based ingredients for the company’s personal care products.
Ashland Inc. (NYSE:ASH)
Average price per share: $64.12
Market capitalization: $3.13 billion
The six most expensive stock insiders have been purchasing lately is a global specialty chemicals company, Ashland Inc. (NYSE:ASH). The Wilmington, Delaware-based company has a workforce of 7,000 professionals, servicing a wide range of consumer and industrial markets in more than 100 countries.
Ashland Inc. (NYSE:ASH) operates in four segments – Life Sciences, Personal Care, Specialty Additives, and Intermediates. The company’s Life Sciences sector generates the highest revenue.
On January 31, two insiders, including the company’s CEO, bought a total of $2.22 million worth of Ashland Inc. (NYSE:ASH) shares at an average price of $64.12 per share. Out of the total amount, Ashland’s CEO, Guillermo Novo, acquired 31,294 shares, worth $2.01 million.
Since the beginning of the year, Ashland’s shares dropped 7.46%, now trading at $66.13 per share. Over the past 12 months, the stock declined 28.26%.
For the first quarter of fiscal 2024, the company reported sales of $405 million, down 14% from the prior year quarter. Net loss amounted to $165 million, compared to net income of $26 million in the same period of 2023. During the quarter, the company signed a definitive agreement to sell its Avoca business.
According to the analysis of seven analysts, Ashland Inc. (NYSE:ASH) stock is “Buy.” The analysts also set a 12-month price target of $93.5, writes StockAnalysis.
Overall ASH ranks 6th on our list of the most expensive stocks insiders are buying recently. While we acknowledge the potential of ASH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
