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 Tectonic Therapeutic, Inc. (NASDAQ:TECX) 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 scientist wearing a lab coat and safety glasses conducting a research experiment related to biotechnology and kidney diseases.
Tectonic Therapeutic, Inc. (NASDAQ:TECX)
Average price per share: $52.76
Market capitalization: $568.67 million
With an average price of $52.76 per share, Tectonic Therapeutic, Inc. (NASDAQ:TECX) is the eighth among the 11 most expensive stocks insiders have bought recently. Tectonic Therapeutic is a biotechnology company engaged in the discovery and development of therapeutic proteins and antibodies that modulate the activity of G-protein coupled receptors (GPCRs).
With its proprietary technology platform GEODe, the company is working on new biological therapeutics to harness the human body to modify the course of disease. Tectonic’s main focus is on medical conditions where therapeutic options are limited or nonexistent. The company was co-founded by Timothy A. Springer and Andrew C. Kruse of Harvard Medical School.
On February 5, two insiders purchased a total of around $40.25 million worth of Tectonic Therapeutic shares at an average price of $52.76 per share. These transactions were part of the company’s $185 million private placement announced on February 3.
The stock is currently trading at $30.84, having lost 33.21% since the beginning of the year. Over the last 12 months, Tectonic Therapeutic returned 97.66% to its investors.
Five analysts have an average “Strong Buy” rating on Tectonic Therapeutic, Inc. (NASDAQ:TECX) stock with a 12-month price target of $80.5 per share, according to data from Stock Analysis.
Overall TECX ranks 8th on our list of the most expensive stocks insiders are buying recently. While we acknowledge the potential of TECX 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 TECX 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.
