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 Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) 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 head-shot of a business executive standing in a modern office of a regional bank.
Burke & Herbert Financial Services Corp. (NASDAQ:BHRB)
Average price per share: $63.94
Market capitalization: $950.09 million
Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) is a bank holding company for Burke & Herbert Bank & Trust Company, which offers a plethora of community banking products and services across Maryland and Virginia. The bank’s offerings include consumer and commercial deposit products (like digital banking, demand, and savings accounts, as well as certificates of deposit) and loans.
Over the past 30 days, three insiders bought a total of around $712,262 worth of Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) shares at an average price of $63.94 per share. At the moment, the stock is trading at $63.47, having gained 1.78% since the beginning of the year. Over the last 12 months, Burke & Herbert’s shares gained 14.98%.
In 2024, the company had a net income of $35.03 million (or $2.82 per diluted share), compared to a net income of $22.69 million in 2023. The company said its balance sheet is strong with liquidity, which includes all available borrowing capacity with cash and cash equivalents, of $4.2 billion at the end of the fourth quarter. Burke & Herbert ended the quarter with 11.5% common equity tier 1 capital to risk-weighted assets, 14.6% total risk-based capital to risk-weighted assets, and a leverage ratio of 9.8%.
The average rating on the stock from two Wall Street analysts is “Moderate Buy.” The analysts have also set a 12-month price target of $76, which is an increase of 19.74% from the previous price, according to TipRanks.
Overall BHRB ranks 7th on our list of the most expensive stocks insiders are buying recently. While we acknowledge the potential of BHRB 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 BHRB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.