Insiders bought large caps like Texas Pacific Land (NYSE: TPL), TKO Group (NYSE: TKO), and Keurig Dr Pepper (NASDAQ: KDP) in Q1, highlighting opportunities in their stocks. The question for Q2 is whether these stocks are good buys for investors, and the answer is not always yes.
Texas Pacific Land: Healthy Dividends Insulated From Tariffs and Oil Prices
Texas Pacific Land is a play on the Permian basin with almost nothing to do with oil. Nearly nothing because it is in the business of land and resource management, providing easements for roads, power lines, and pipelines, along with water and other resource-based services. It is the most bought stock by insiders based on the number of purchases, with two insiders buying 33 times in Q1.
The buys were made by Director Murray Stahl and major shareholder Horizon Kinetics Assets Management, which Mr. Stahl happened to form. Horizon Kinetics is an asset manager providing mutual and exchange-traded funds and is the largest shareholder of this stock, holding about 16% of the float.
Among Texas Pacific Land's investment attractions are its high-margin, royalty-based business, debt-free balance sheet, cash flow, and capital return. The stock trades at a high price multiple because of it, but the high valuation is offset by distribution reliability and a growth outlook.
After two decades of consistent increases, the dividend is only 23% of the earnings outlook and is expected to continue growing. The only downside is that dividend payments can be erratic in size quarterly. One analyst rates this stock as a Buy but sees it trading about 25% above fair value in Q2 2025: institutions, including BlackRock and Vanguard, own about 60% and are buying on balance this year.
TKO Group A Knockout for Insiders, Institutions, and Analysts
Sell-side trends for TKO Group are positive, including insider buying, institutional activity, and analysts' sentiment. The insiders, including the CEO and several directors, bought in bulk, making it the #1 bought stock in terms of dollar value in Q1. Their purchases topped $300 million and put total holdings, including major shareholders, at nearly 55%.
Like the insiders, institutional activity ramped to a multi-year high in Q1. They own almost 90% of the stock, including major shareholders, making it effectively 100% owned. Few shares are available for day-to-day trading and retail investors. Analysts, likewise, rate the stock as a Buy, and coverage and the price target are increasing. The consensus assumes a 10% upside in mid-April, with revisions pointing to an above-consensus price point by year’s end.
What is TKO Group? It is the combined WWE and UFC entertainment empires. Its business will grow in 2025, and it has no direct tariff exposure. The company pays a dividend worth about 1.0% in yield.
Keurig Dr Pepper: Headwinds Offset By Tailwinds
Keurig Dr Pepper has a lot of exposure to tariffs, including aluminum and coffee. However, it is well-positioned in its space and is getting the attention of analysts despite the threats. Coverage in April highlighted the company’s appeal to Gen Z and younger consumers and the general strength expected for the industry. Analysts rate KDP stock as a Moderate Buy and forecast a 10% advance. Institutions are also bullish on this stock, owning more than 90% of it and ramping their buying to a multiyear high in Q1.
KDP is ranked #1 for Q1 regarding the number of shares purchased by insiders. A single insider, major shareholder Bevco, bought shares in late January. However, those shares were sold in late February, providing the firm a quick 10% gain, and the other data is less bullish. Insiders, including a director and several C-suite execs, are selling.
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