We recently published a list of 10 Stocks With At Least $20 Million In Insider Spending Recently. In this article, we are going to take a look at where TKO Group Holdings, Inc. (NYSE:TKO) stands against other stocks with at least $20 million in insider spending recently.
As the stock market navigates a complex environment shaped by recent trade policies, mixed economic signals, and new geopolitical circumstances, investors must remain vigilant. While many experts raise concerns about potential increased volatility under Trump, some analysts believe he is the most pro-stock market president in U.S. history.
On Monday, one day before Trump’s 25% tariffs on goods imported from Canada and Mexico into the U.S. were set to take effect, markets declined. The broader market fell 1.8%, marking its biggest one-day drop of the year, while tech stocks saw a 2.6% decline.
“No room left for Mexico or for Canada,” Trump said at the White House on Monday. “The tariffs, you know, they’re all set. They go into effect tomorrow.”
With no certainty about how long these fluctuations will continue, investors seem to be growing more cautious. While it’s difficult to predict what will happen next, some experts believe that the U.S. Federal Reserve might cut interest rates.
Equity strategists in a Reuters poll project that the broader market will finish the year 9% higher than its current level. Morgan Stanley’s Andrew Slimmon suggests that the adoption of AI could lead to a productivity boom, similar to what happened with the Internet in the late 1990s.
Amid market fluctuations and uncertainty, insider trading also comes into focus. Executives and insiders, with their valuable insights into company strategy, plans, and future moves, may have trades worth analyzing. For example, when a CEO or CFO invests their own money in company shares, it can signal strong confidence in the company’s potential.
However, it is important to highlight that both insider buying and selling can be driven by various motives; therefore, these actions should be considered only within a broader context of the company’s fundamentals, industry trends, and market conditions. This is why due diligence is crucial before making any investment. Insider trading activity, along with other relevant factors, can offer valuable insights into a company’s capabilities, helping investors make more informed decisions.
Today, we will focus on stocks that have seen at least $20 million in insider spending recently. For this purpose, we used Insider Monkey’s insider trading stock screener, focusing on stocks where at least one insider purchase over the last three months was valued at $20 million or more. Although the total value of insider purchases during this period may be higher, only those worth $20 million or more were considered in this search. Since there were more than 10 stocks meeting this criterion, we selected the 10 stocks with insider purchases ranging from $20 million to $35 million, choosing those with the highest amounts within this range for further analysis.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
For each stock, we provide details on the highest individual purchase, the number of insider purchases between $20 million and $35 million over the last three months and the company’s current market capitalization.
TKO Group Holdings, Inc. (NYSE:TKO)
Highest Individual Purchase: $26,001,524.32
Number of Purchases Worth Between $20 million and $35 million: 6
Market Capitalization: $12.29 billion
The sports and entertainment giant, TKO Group, was created by Endeavor (NYSE:EDR) as part of a merger between World Wrestling Entertainment and Zuffa, LLC, the parent company of the Ultimate Fighting Championship. The New York and Beverly Hills, California-based company produces and licenses live events, TV programs, long- and short-form content, reality series, and more. Its diverse content reaches more than 1 billion households across around 210 countries and territories. Each year, the company organizes more than 300 live events, attracting more than two million fans.
In February, the company announced that UFC and Monster Energy have signed a multiyear renewal of their long-standing partnership, under which Monster will continue as the exclusive global Offical Energy Drink of UFC.
In December, three insiders, including the CEO, made several investments in the company. Three investments amounted to $26 million each, acquiring 176,833 shares for $147.04 per share. Currently, the stock is trading at $147.79, having gained 4% since the beginning of the year.
For full year 2024, TKO Group disclosed revenue of $2.804 billion, net income of $6.4 million and adjusted EBITDA of $1.251 billion.
According to 15 analysts, the average rating for TKO Group stock is “Strong Buy.” A 12-month price target is $152.38, writes StockAnalysis. The financial data for 2023 is unavailable, because the company went public in September 2023.
TKO Group is also one of 11 most expensive stocks insiders are buying recently.
Overall, TKO ranks 4th on our list of stocks with at least $20 million in insider spending recently. While we acknowledge the potential of TKO 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 TKO 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.
