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 TKO Group Holdings, Inc. (NYSE:TKO) 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).
Stagehands setting up the equipment for a live entertainment event.
TKO Group Holdings, Inc. (NYSE:TKO)
Average price per share: $160.52
Market capitalization: $13.23 billion
The first among the 11 most expensive stocks insiders are buying recently is a global sports and entertainment company – TKO Group Holdings, Inc. (NYSE:TKO). It 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 stock is also one of the 10 stocks insiders spent the most money on recently.
TKO Group Holdings, Inc. (NYSE:TKO) produces and licenses live events, TV programs, long- and short-form content, reality series, etc. Its 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.
Over the last 30 days, three insiders acquired a total of $848.67 million worth of TKO Group’s shares, at an average price of $160.52 per share. The stock is currently trading at $163.06, having gained 14.74%, year-to-date. Over the past 12 months, TKO Group shares returned 90.35% to its investors.
According to 14 analysts, the average rating for TKO Group Holdings, Inc. (NYSE:TKO) stock is “Strong Buy.” A 12-month price target is $146.46, data from StockAnalysis reveals.
Overall TKO ranks 1st on our list of the most expensive stocks insiders are buying 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.
