10 Cheapest Stocks Insiders Are Buying Recently

7. Loop Industries, Inc. (NASDAQ:LOOP)

Average price per share: $1.13

Market capitalization: $60.954 million

Loop Industries is a technology company on a mission to advance a circular plastics economy through the production of 100% recycled polyethylene terephthalate plastic and textile-to-textile polyester fiber.

In December, the company secured €10 million ($10.44) via a convertible preferred security financing with Reed Societe Generale Group, a European investment firm majority-owned by the bank Societe Generale. In addition, as part of the transaction, Loop sold its first Infinite Loop technology license, generating an initial €10 million payment, with additional milestone-based payments from Reed Societe Generale Group to follow.

In January, two insiders purchased $114,506 worth of Loop Industries shares at an average price of $1.13. The stock is currently trading at $1.28, having gained 6.67% year-to-date.

One Wall Street analyst has a “Buy” rating on the stock, and a 12-month price target of $5.80, which represents an increase of 353.12% from the previous price, according to data from TipRanks.

Over the last 12 months, the company’s shares declined 52.94%. While there is no analyst coverage that explains this decline in LOOP share price, it is important to mention that, usually penny stocks are notably more volatile than higher-priced, larger stocks that don’t face the same liquidity issues. However, insiders continuing to invest in Loop Industries signals the management’s confidence in the company’s future.