After two years of more-or-less steady gains, the markets have taken a steep dive in recent months, leaving investors on edge. Concerns are mounting over a potential economic slowdown, President Trump’s aggressive tariff policies, and the looming threat of trade wars with major trading partners. With uncertainty clouding the outlook, it’s no surprise the markets have turned jittery.
But some insiders see the current situation as an opportunity, and they’re buying in now while prices are low. These insiders are corporate officers – from the Boards of Directors or the C-suite – whose positions give them solid insight into the likely forward path for their own companies’ shares. It’s only natural for them to trade on that information, and their regularly published trading activity is a ready resource for the retail investor.
The key point to remember here is that insiders usually have only one reason to buy: they believe the shares will appreciate in value. Right now, prices are low, and if a company’s fundamentals are sound, it’s a good bet that its stock will likely show a bounce to justify a purchase.
With that in mind, we’ve tapped into the TipRanks Insiders’ Hot Stocks tool to uncover two stocks that have suffered a recent drop but are seeing large insider buying. Let’s dive into the details.
TKO Group Holdings (TKO)
Say whatever you will about them, there is no doubt that both professional wrestling and ultimate fighting make for good TV. They’ve proven popular over the years, and each has built a strong audience. And in 2023, the two franchises merged.
In September of that year, the Endeavor sports and entertainment group, which owned UFC, the Ultimate Fighting Championship, conducted a merger with WWE, World Wrestling Entertainment, to form a combined company, TKO Group Holdings. The merger transaction was valued at $21 billion, with UFC’s ownership and management taking a 51% stake in TKO and WWE holding the remaining 49%. Today, TKO boasts a market cap of nearly $24 billion.
In addition to UFC and WWE, the current incarnation of TKO Group Holdings also owns the PBR bull riding franchise, controls the global sports marketing agency IMG, and partners with On Location, a global leader in experiential hospitality. The company announced in February that it had completed the final acquisition of these assets from Endeavor, which remains TKO’s majority owner. Taken altogether, TKO’s properties organize more than 500 live events every year, attract more than three million fans, and are watched in 210 countries around the world.
Since the UFC-WWE merger transaction, TKO management has successfully integrated the two companies while also preserving the features and attractions that made each one unique. This integration has brought the company a net operating savings of approximately $100 million, a clear sign of corporate efficiency.
This has been accompanied by solid financial performance for TKO. For 4Q24, the company’s top line of $642.2 million was up 4.6% year-over-year and beat the forecast by $38.22 million; at the bottom line, the company delivered quarterly earnings of 28 cents per share, up from a 16-cent net loss reported in 3Q24 and about 7 cents per share better than anticipated. Looking ahead, TKO expects 2025 revenues to fall in the range between $2.93 billion and $3.00 billion.
Despite the strong results, the stock has slipped 17.5% from the peak value it reached this past February and one insider has decided to take advantage. Jonathan Kraft of the company’s Board of Directors made some recent large purchases, buying two tranches of stock during the first week of March. His purchases totaled 23,500 shares, for which he paid over $3.52 million.
For Jefferies analyst Randal Konik, a key feature of TKO is the company’s UFC franchise. Writing of the stock and its prospects for growth, he says, “UFC’s ’26 media rights deal remains a key focus for investors. With a lucrative market for live sports content, UFC should receive a significant premium for its global appeal and fan growth. We’re modeling a deal at 1.8x the current $500M AAV, and estimating a ~$300M EBITDA lift in F’26, which could be conservative, as sports rights deals in ’24 averaged 2.7x over prior AAV. Shares remain undervalued relative to peers, and we’d continue buying at these levels.”
In recognition of his preference to keep buying TKO, Konik rates the stock as a Buy, with a $220 price target that implies an upside potential of 51% over the next year. (To watch Konik’s track record, click here)
This stock has picked up 13 recent analyst reviews, with an 11-to-2 split favoring Buy over Hold, giving the shares a Strong Buy consensus rating. The stock is currently selling for $139.62, and its $178.36 average target price suggests that a gain of 22.5% lies ahead for the coming year. (See TKO stock forecast)
New Fortress Energy(NFE)
Next on our list of ‘insider buys’ is New Fortress Energy, a natural gas company deeply involved in the market for liquefied natural gas, or LNG. Natural gas is usually converted into LNG for long-distance transportation, particularly by sea. New Fortress describes itself as a global energy infrastructure company, dedicated to speeding up the global clean energy transition. The company creates integrated logistic chains, capable of delivering clean and affordable LNG quickly and efficiently.
New Fortress’s operations are centered on the Caribbean and the Gulf of Mexico regions, with additional ops and facilities located in South America and the UK. The company’s assets include an interlocked network of liquefaction facilities as well as LNG import-export terminals. The company can also convert existing power facilities and boilers to use LNG fuel.
This company holds a solid position in the LNG field and can move 51mm gpd through its liquefied natural gas network. New Fortress also operates 29 transport ships, which work across 10 geographical regions.
In its last earnings report, which covered 4Q24, New Fortress reported a top line of $679 million. While down more than 10% year-over-year, this figure beat the estimates by $65.76 million. New Fortress’s 4Q earnings total, reported as 13 cents per share in non-GAAP measures, was up 8 cents per share from the previous quarter and was 7 cents per share better than the forecast.
Yet New Fortress has seen its shares sink in recent months. Year-to-date, the stock is down 34% with investors concerned about the level of debt and the balance sheet, but one insider evidently senses an opportunity.
Board member Wesley Edens made the most recent notable purchases of NFE stock. On March 11 and 12, he purchased two blocks, which totaled 300,000 shares, for which he paid $2.66 million. His total stake in the company is currently valued at more than $526 million.
This stock has caught the attention of Stifel analyst Benjamin Nolan, who acknowledges that the company has debt problems – but also sees a way out. He writes of the company, “In the short term, the key to a recovery in the share price and addressing the near-term debt maturities is the sale of the Jamaica business. Management indicated on the call that Jamaica is about a $125 million EBITDA business, and we expect that should generate gross proceeds of ~$1 billion; the question is when. While we have no specific knowledge of any deal, we expect there may be an announcement with respect to a sale within the next 30 days. That said, with nearly $1 billion of cash and restricted cash, there is no immediate liquidity or refinancing need, and we expect NFE has about a six-month window to resolve the refinancing.”
Assuming that New Fortress can address its difficulties, Nolan goes on to say of the company, “We still view this as a binary name given the credit profile, but if the company is able to successfully improve liquidity and increase cash flows without much if any further dilution, we see substantially more upside relative to the downside risk.”
Quantifying the upside, Nolan puts a Buy rating on NFE, and his $16 price target indicates potential for a 60% gain over the next 12 months. (To watch Nolan’s track record, click here)
This energy company has a Moderate Buy consensus rating, based on 4 recent analyst reviews with an even split of 2 Buy and 2 Holds. The stock’s trading price of $9.99 and average price target of $13.25 together suggest a one-year upside potential of 32.5%. (See NFE stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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