We recently published a list of 10 Stocks With At Least $10 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 $10 million in insider spending recently.
Since Donald Trump took office, the stock market has experienced a roller coaster ride. Nonetheless, despite concerns about tariffs, job cuts, policy changes, and geopolitical uncertainties, the broader market has risen by 1.46% year-to-date. Furthermore, equity strategists in a Reuters poll project that the broader market will finish the year 9% higher than its current level.
“Many analysts agree with this projection, arguing that the Trump administration’s policies won’t have long-term negative impacts on economic growth or inflation. Furthermore, Trump is often considered the most pro-stock market president in American history.
In addition, one factor that could support the bull market is the adoption of AI, which, according to Morgan Stanley’s Andrew Slimmon, could lead to a productivity boom similar to what happened with the Internet in the late 1990s. Slimmon also points out that investor behavior over the last few years seems similar to what it was in previous bull markets, and adhering to these patterns can be one of the most reliable strategies for driving portfolio outperformance.
When analyzing investor behavior, we chose to focus on insiders—high-level executives and directors within a company. Why focus on insiders? Because they often have valuable insights into a company’s strategy, plans, and next moves. For example, when a CEO or CFO invests their own money in company shares, it can signal strong confidence in the company’s potential.
While both insider buying and selling can be driven by various motives, it’s important to consider these actions in the context of the company’s fundamentals, industry trends, and market conditions. This is why due diligence is crucial before making any investment. However, insider trading activity, along with other relevant factors, can offer valuable insights into a company’s capabilities, helping investors make more informed decisions.
What stocks have seen at least $10 million in insider spending recently? To find out, we used Insider Monkey’s insider trading stock screener, focusing on stocks where at least one insider purchase since the beginning of the year was valued at $10 million or more. Although the total value of insider purchases during this period may be higher, only those worth $10 million or more were considered in this search. Since there were more than 10 stocks meeting this criteria, we selected the 10 stocks with insider purchases ranging from $10 million to $20 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 $10 million and $20 million since the start of the year, and the company’s current market capitalization.
Photo by Mario Klassen on Unsplash
TKO Group Holdings, Inc. (NYSE:TKO)
Highest Individual Purchase: $14,799,360.15
Number of Purchases Worth Between $10 million and $20 million: 3
Market Capitalization: $12.29 billion
TKO Group Holdings, Inc. (NYSE:TKO) is a sports and entertainment giant that produces and licenses live events, TV programs, long- and short-form content, reality series, and more. It was formed 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 merger marked the first time WWE was no longer majority-controlled by the McMahon family, which had owned it for over 70 years.
Its content reaches over 1 billion households across approximately 210 countries and territories. Each year, the company organizes over 300 live events, attracting more than 2 million fans. TKO Group (NYSE:TKO) is also one of the 11 most expensive stocks insiders are buying recently.
Counting only purchases above $10 million, three investors, including the company’s CEO, acquired a total of $185.53 million in TKO Group shares at an average price of $163.80 per share. Of the total purchases, three were valued at $14.8 million each, falling within the $10 million to $20 million range. With the latest purchases, the company’s CEO, Ariel Emanuel, increased his holdings to 2.58 million TKO Group shares.
The stock is currently trading at $150.64, having gained 6% since the beginning of the year. Over the past five years, TKO Group shares have returned 84.45% to investors.
In February, the company announced that UFC and Monster Energy had signed a multiyear renewal of its long-standing partnership, under which Monster will continue as the exclusive global Official Energy Drink of UFC.
Eleven Wall Street analysts have given TKO Group stock an average “Strong Buy” rating, with a price target of $175.45 per share, data from TipRanks reveals.
Overall, TKO ranks 7th on our list of stocks with at least $10 million in insider spending recently. While we acknowledge the potential of TKO, 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.
