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 Merck & Co., Inc. (NYSE:MRK) 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).

A close-up of a person's hand holding a bottle of pharmaceuticals.

Merck & Co., Inc. (NYSE:MRK)

Average price per share: $88.38

Market capitalization: $222.71 billion

The third among the 11 most expensive stocks insiders are buying recently is a New Jersey-based global healthcare company that develops treatments for oncology, immunology, neuroscience, virology, cardiovascular diseases, and diabetes. Merck & Co., Inc. (NYSE:MRK) also runs an animal health division concentrated on veterinary pharmaceuticals, vaccines, and health management solutions. It is a dividend-paying stock and one of 13 cheap high dividend stocks to invest in now.

The company recently announced it has received European Commission conditional approval for WELIREG (belzutifan), the first oral HIF-2α inhibitor in the EU, for two indications: treatment of adult patients with von Hippel-Lindau (VHL) disease and advanced clear cell renal cell carcinoma.

In February, two insiders bought a total of around $1.58 million worth of Merck & Co., Inc. (NYSE:MRK) shares at an average price of $88.38 per share. Currently, the stock is trading at $88.00 per share, having lost 11.55% since the beginning of the year. Over the past 12 months, the stock declined 31.31%, and it is possible that insiders wanted to use the current drop to acquire shares at a more affordable price.

In 2024, the company had sales of $64.16 billion, compared to $60.12 billion in 2023.

As per the opinion of 17 analysts, Merck & Co. is a “Buy.” A 12-month price target is projected at $120.31, data from StockAnalysis reveals.

Overall MRK ranks 3rd on our list of the most expensive stocks insiders are buying recently. While we acknowledge the potential of MRK 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 MRK 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.