10 Best Low Float Stocks to Buy Now
In this article, we discuss the 10 best low float stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Low Float Stocks to Buy Now.
The stock market has favored risk takers over the past few years. Technology-related growth stocks that are generally more volatile compared to value plays have offered record returns to investors. Some of these stocks now dominate the S&P 500, like Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), Tesla, Inc. (NASDAQ: TSLA), and Microsoft Corporation (NASDAQ: MSFT), among others. Together, these account for more than 25% of the whole index.
Some of these companies have crossed $2 trillion in market capitalization and their stock is out of reach of most investors. However, even in this era of soaring market valuations, there are cheaper options that offer investors explosive growth potential. For those who are not afraid of price volatility, low float stocks could be a good bet. Low float stocks have a low number of outstanding shares. This leads to higher volatility in trading. If played right, these options can bring in handsome returns for those smart enough to invest in them.
Stock markets like the NYSE or NASDAQ typically have checks on registered firms to keep floats at a certain level and thereby reduce price volatility. The NYSE requires 1.1 million publicly traded shares for a listing while the NASDAQ requires 1.25 million. Generally, low float stocks comprise small firms with market capitalizations similar to nano-caps, though there may be exceptions. Institutional investors have generally stayed away from low float stocks because of price volatility and the difficulties associated with vetting small firms.
Retail investors, however, who are now exerting a great deal of influence on the market, can look for low floats as an entry into the finance world. Some of the best low float stocks are discussed in detail below. It is important to remember that these firms are not very well-known and it takes a great deal of market research to identify the low float stocks that would offer quick returns. It is also a good exercise in understanding how the market functions and what forces may or may not have a bearing on the overall dynamics.
Retail investors have transformed the world of finance. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and May 29th 2021 our monthly newsletter’s stock picks returned 206.8%, vs. 91% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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With this context in mind, here is our list of the 10 best low float stocks to buy now. These were ranked keeping in mind the float, basic business fundamentals, analyst ratings, and hedge fund sentiment around each.
Best Low Float Stocks to Buy Now
10. Rand Capital Corporation (NASDAQ: RAND)
Number of Hedge Fund Holders: N/A Float: 640,000
Rand Capital Corporation (NASDAQ: RAND) is placed tenth on our list of 10 best low float stocks to buy now. The company’s shares have returned 59% to investors over the past year. The firm is a business development company based in New York. It has a market cap of more than $43 million and posted over $3 million in revenue last year. The firm invests in small or medium businesses and prefers firms working in the technology area, offering some new product or service.
On March 31, Rand Capital Corporation (NASDAQ: RAND) had announced that it had funded two new portfolio firms with close to $4.5 million. The investments were made through debt instruments with equity components, the company revealed.
Earlier, on February 26, Rand Capital Corporation (NASDAQ: RAND) announced that the board of the company had declared the first regular cash dividend to shareholders. The cash dividend was 10c per share and payable at the end of the month, according to the firm.
Unlike Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), Tesla, Inc. (NASDAQ: TSLA), and Microsoft Corporation (NASDAQ: MSFT), Rand Capital Corporation (NASDAQ: RAND) is one of the best low float stocks to buy now.
9. PrimeEnergy Resources Corporation (NASDAQ: PNRG)
Number of Hedge Fund Holders: N/A Float: 640,000
PrimeEnergy Resources Corporation (NASDAQ: PNRG) stock has returned 22% to investors over the past six months. It is ranked ninth on our list of 10 best low float stocks to buy now. The firm produces and sells oil and natural gas. It is headquartered in Texas. The company is active in Oklahoma, Texas, and West Virginia. It owns more than 700 wells in these areas and has interests in 800 others. It was founded in 1973. In addition to exploration projects, the company also engages in joint ventures for oil with industrial partners.
PrimeEnergy Resources Corporation (NASDAQ: PNRG) declared earnings for the first quarter on May 18, reporting earnings per share of -$0.73 and a revenue of more than $14.7 million. The firm has a market cap of over $105 million.
On July 20, the share price of PrimeEnergy Resources Corporation (NASDAQ: PNRG) jumped close to 5% in a single day. However, the trading volume of the stock, which has a 30-day average of 7,199, registered a decrease, clocking in at 1,727.
PrimeEnergy Resources Corporation (NASDAQ: PNRG) is one of the best low float stocks to buy now, unlike Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), Tesla, Inc. (NASDAQ: TSLA), and Microsoft Corporation (NASDAQ: MSFT).
8. NCS Multistage Holdings, Inc. (NASDAQ: NCSM)
Number of Hedge Fund Holders: N/A Float: 620,000
NCS Multistage Holdings, Inc. (NASDAQ: NCSM) is a Texas-based firm that markets engineered products and support services. It is placed eighth on our list of 10 best low float stocks to buy now. The company’s shares have offered investors returns exceeding 166% over the past year. It was founded in 2006 and has a market cap of more than $74 million. Some of the products the company sells include casing-installed sliding sleeves, downhole frac isolation assemblies, sand jet perforating products, and spotfrac systems, among others.
In earnings results for the first quarter, posted on May 3, NCS Multistage Holdings, Inc. (NASDAQ: NCSM) reported earnings per share of -$1.18, beating market estimates by $0.22. The revenue over the period was over $28 million, beating estimates by $0.5 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in NCS Multistage Holdings, Inc. (NASDAQ: NCSM) with 8,111 shares worth more than $225,000.
Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), Tesla, Inc. (NASDAQ: TSLA), and Microsoft Corporation (NASDAQ: MSFT) are not one of the best low float stocks, while NCS Multistage Holdings, Inc. (NASDAQ: NCSM) is on that list.
7. Village Bank and Trust Financial Corp. (NASDAQ: VBFC)
Number of Hedge Fund Holders: N/A Float: 530,000
Village Bank and Trust Financial Corp. (NASDAQ: VBFC) is ranked seventh on our list of 10 best low float stocks to buy now. The stock has offered investors returns exceeding 59% over the course of the past year. The firm operates from Virginia and acts as a bank holding firm. It was founded in 1999. The bank offers commercial and mortgage banking services. Some of the counties in which the bank operates include Chesterfield, Hanover, Henrico, Powhatan, and James City, among others.
Village Bank and Trust Financial Corp. (NASDAQ: VBFC) has a market cap of over $68 million and posted more than $32 million in revenue last year. The 52-week price range of the stock is between $28 and $62. The short interest on it is 0.31%.
Out of the hedge funds being tracked by Insider Monkey, Pennsylvania-based firm Minerva Advisors is a leading shareholder in Village Bank and Trust Financial Corp. (NASDAQ: VBFC) with 24,745 shares worth more than $968,000.
Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), Tesla, Inc. (NASDAQ: TSLA), and Microsoft Corporation (NASDAQ: MSFT) dominate the market, unlike Village Bank and Trust Financial Corp. (NASDAQ: VBFC), a small firm with growth potential.
6. Seneca Foods Corporation (NASDAQ: SENEA)
Number of Hedge Fund Holders: 12 Float: 460,000
Seneca Foods Corporation (NASDAQ: SENEA) is a New York-based firm that markets packaged fruits and vegetables. It is placed sixth on our list of 10 best low float stocks to buy now. The company’s shares have offered investors returns exceeding 38% over the course of the past twelve months. Some of the brands under which the company sells products include Seneca, Libby’s, Aunt Nellie’s, READ, Green Valley, and CherryMan, among others. The firm was founded in 1949 and exports to 90 countries.
In earnings results for the fourth fiscal quarter, posted on June 11, Seneca Foods Corporation (NASDAQ: SENEA) reported earnings per share of $1.63 and a revenue of more than $304 million, down 1% compared to the revenue over the same period last year.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Royce & Associates is a leading shareholder in Seneca Foods Corporation (NASDAQ: SENEA) with 390,740 shares worth more than $18.4 million.
Amazon.com, Inc. (NASDAQ: AMZN), Facebook, Inc. (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), Tesla, Inc. (NASDAQ: TSLA), and Microsoft Corporation (NASDAQ: MSFT) are large cap companies, unlike Seneca Foods Corporation (NASDAQ: SENEA).
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Disclose. None. 10 Best Low Float Stocks to Buy Now is originally published on Insider Monkey.
