In this article, we will take a detailed look at the 10 cheapest stocks insiders are buying recently. We previously covered 10 stocks insiders spent the most money on recently.
Why should we be interested in affordable stocks? Some investors like to look for cheaper stocks in order to diversify their portfolios, because these penny stocks often operate in different industries than larger businesses.
Some investors’ strategy is finding nascent companies with strong growth potential, which can bring high returns once the companies have grown. Even though penny stocks often carry higher risks and are more prone to market volatility, they also offer investors more room for growth.
What are some ways to assess cheap stocks that are worth investing in? While there’s no single simple or complicated rule that investors can follow to achieve secure results, some strategies can help. One strategy is to keep track of insider trading activity. Insiders or, in other words, people in high positions within companies, such as CEOs, CFOs, directors and other executives have valuable insights into the company’s strategic moves, plans, and initiatives. A CEO’s investment in a company’s stock can sometimes signal strong confidence in the company’s future.
While both insider selling and buying can be driven by various motives, it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
What are some of the most affordable 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 lowest 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).
With each stock, we note the average price per share of these purchases and the stock’s market capitalization. Let’s take a look at the 10 cheapest stocks insiders have been buying recently.
A fireworks display, reflecting the company’s success in the global trading market.
10. OncoCyte Corporation (NASDAQ:OCX)
Average price per share: $2.03
Market capitalization: $78.93 million
OncoCyte Corporation is a precision diagnostics company focused on the development of new innovative and non-invasive blood and urine diagnostic tests for the early detection of cancer. The Irvine, California-headquartered company designs diagnostic tests using genetic and protein markets expressed in various types of cancer.
The company’s leading tests are VitaGraft, a clinical blood-based solid organ transplantation monitoring test, GraftAssure, a research use only blood-based solid organ translation monitoring test, DetermaIO, a gene expression test that assesses the tumor microenvironment to predict response to immunotherapies, and DetermaCNI is a blood-based monitoring tool for monitoring therapeutic efficacy in cancer patients.
Recently, the company announced that the Molecular Diagnostic program has confirmed the use of VitaGraft Kidney to monitor patients with newly developed donor-specific antibodies for antibody-mediated rejection. The news comes on the heels of a study highlighting VitaGraft Kidney’s capabilities.
Over the last 30 days, three insiders, including the company’s CFO, acquired a total of around $13.01 million worth of OncoCyte shares at an average price of $2.03 per share. The stock is currently trading at $2.76, having gained 15.97% since the beginning of the year. Over the last 12 months, its shares dropped 10.10%.
For the third quarter of 2024, the company disclosed net revenue of $115,000, which compares to net revenue of $429,000 in the same period of 2023. Gross profit was $50,000, down from $248,000 in the third quarter of the prior year. Net loss amounted to $13.49 million, compared to net loss of $6.49 million in the comparable quarter of 2023.
Three analysts have an average “Buy” rating on OncoCyte stock, with a 12-month price target of $4.42. This represents an increase of 60.15% from the previous price, according to data from StockAnalysis.
9. Zentalis Pharmaceuticals, Inc. (NASDAQ:ZNTL)
Average price per share: $1.87
Market capitalization: $180.30 million
The ninth stock among the 10 most affordable stocks insiders have been buying recently is Zentalis Pharmaceuticals, a clinical-stage biopharmaceutical company engaged in the discovery and development of small molecule therapeutics targeting biological pathways of cancers. Among its leading oncology candidates is azenosertib (ZN-c3), an inhibitor of the tyrosine kinase Wee1. The company recently confirmed that azenosertib showcased significant progress in clinical trials for platinum-resistant ovarian cancer.
Over the last 30 days, four insiders, including the company’s CEO, and CMO, acquired a total of $223,413 worth of Zentalis Pharmaceutcials shares at an average price of $1.87 per share. Year-to-date, the stock gained 16.50% and is now trading at $2.53 per share. Over the past 12 months, its shares declined 81.69%.
For the third quarter of 2024, Zentalis Pharmaceuticals reported a net loss of $40.16 million, which compares to a net loss of $55.53 million in the same period a year ago. Basic loss per share from continuing operations was $0.56 compared to $0.79 in the same quarter of 2023.
According to the average rating of nine Wall Street analysts, Zentalis Pharmaceuticals is a “Moderate Buy”. The analysts have placed an average price target of $5.97, which is 135.97% higher than the previous price, as per data from TipRanks.
8. Heritage Distilling Holding Company, Inc. (NASDAQ:CASK)
Average price per share: $1.21
Market capitalization: $6.45 million
A craft distillery, Heritage Distilling, is one of the top 10 cheapest stocks insiders have been investing in lately. The Gig Harbor, Washington-based company is among the most awarded craft distilleries in the U.S. The company makes whiskeys, gins, vodkas, rums and ready-to-drink canned cocktails. It also operates distillery tasting rooms in Washington and Oregon.
The stock went public in November 2024.
In December, Heritage Distilling announced expansion into the Western Colorado market via strategic collaboration with Innermountain Distributing Co., and also into the Kentucky market in partnership with Keg 1 River City.
In January, Heritage Distilling became the first publicly traded distillery to accept cryptocurrency bitcoin. The company allowed bitcoin as a form of payment via its e-commerce platform as part of its broader corporate sales and treasury diversification strategy.
In February, four insiders, among which is Heritage Distilling’s CEO and Treasurer, bought roughly $81,895 worth of shares at an average price of $1.21 per share. Out of the total amount, the company’s CEO, B Justin Stiefel, acquired 10,732 shares worth around $13,025. With this purchase, Stiefel increased his holdings to 67,294 shares.
Since the beginning of the year, Heritage Distilling’s shares dropped 30.81%, and are now trading at $1.19 per share.
There is no analyst coverage available for this stock at the moment, probably because this is a new stock on the market. We should expect analyst reports as the company matures in the market.
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.
6. Regulus Therapeutics Inc. (NASDAQ:RGLS)
Average price per share: $1.08
Market capitalization: $85.15 million
The sixth stock among these cheapest penny stocks insiders have been purchasing is a biopharmaceutical company engaged in the discovery and development of innovative medicines targeting microRNAs. Among the company’s leading candidates is Farabursen (RGLS8429), an anti-miR next-generation oligonucleotide targeting miR-17 for the treatment of autosomal dominant polycystic kidney disease. The San Diego, California-headquartered company is also working on a pipeline of preclinical drug products for target organ-selective delivery strategies.
On January 29, the company announced positive clinical and regulatory updates from its autosomal dominant polycystic kidney disease program for Farabursen. “The results from Cohort 4 are very promising, further validating the impact of farabursen on urinary exosomal polycystin levels and suggesting an opportunity to beneficially impact kidney volume growth rate, as we have now observed notable improvements across multiple treatment cohorts,” stated Alan Yu, M.D., University of Kansas Medical Center.
Following the news, on January 30, two insiders acquired a total of around $75,046 worth of Regulus Therapeutics shares at an average price of $1.08 per share. Out of the total amount, the company’s CEO, P Joseph Hagan, bought 50,000 shares, increasing his ownership to 260,808 shares. The stock is now trading at $1.30 per share, as it lost 17.72% since the beginning of the year. Over the past 12 months, Regulus Therapeutics shares dropped 16.13%.
Regulus Therapeutics has an average “Strong Buy” rating from six analysts. Data from StockAnalysis further reveals a 12-month price forecast is $10.33, representing an increase of 694.62% from the previous price.
5. GrafTech International Ltd. (NYSE:EAF)
Average price per share: $1.06
Market capitalization: $280.42 million
GrafTech International Ltd. is a producer of graphite electrodes and petroleum coke, which are essential for the production of electric arc furnace steel and other ferrous and non-ferrous metals. The Brooklyn Heights, Ohio-headquartered company was founded in 1886 and has a comprehensive portfolio of affordable, ultra-high power graphite electrode production facilities. It has vertical integration within the petroleum needle coke industry. GrafTech sells its products primarily through a direct sales force, independent sales representatives, and distributors.
On February 13, two insiders, including the CEO, acquired a total of around $105,595 worth of GrafTech shares at an average price of $1.06 per share. Year-to-date, the stock declined 36.99% and is now trading at $1.09 per share. On February 12, its shares hit the lowest point this year, trading at $1.02, which may suggest that insiders wanted to use the drop and acquire more shares at a more affordable price.
For the full year 2024, the company disclosed net sales of $538.78 million, compared to net sales of $620.50 million in 2023. Net loss for the year amounted to $131.17 million, which compares to net loss of $255.25 million for the full year 2023. Adjusted EBITDA for 2024 was $2 million, compared to adjusted EBITDA of $20 million in the prior year.
The earnings came lower than expected, which could be the reason behind the recent drop in its share price. However, insider trading activity still indicates confidence in this stock’s growth.
Five analysts have an average “Hold” rating on GrafTech stock, with a 12-month stock price target of $1.73, according to data from Stock Analysis.
4. Orion Energy Systems, Inc. (NASDAQ:OESX)
Average price per share: $0.82
Market capitalization: $27.75 million
Orion Energy Systems is a provider of energy-efficient LED lighting and controls, electric vehicle (EV) charging station solutions, and maintenance services. The company is focused on turnkey design-through-installation solutions for large national customers and on supporting customers to achieve their environmental goals through safe and sustainable solutions that reduce businesses’ carbon footprint.
In February, three insiders bought a total of around $28,816 worth of Orion Energy shares at an average price of $0.82 per share. The stock currently trading close to that amount – $0.84 per share. However, over the last five years, its shares declined 83.96%.
On February 19, the company announced it had started on-site LED lighting installation for a federal government agency. To date, project purchase orders amount to $3 million, but there’s potential for expansion. The project is expected to be finalized in the first half of Orion’s fiscal year 2026.
For its fiscal 2025 third quarter, the company disclosed revenue of $19.6 million, which compares to $26.0 million in the third quarter of 2024. Net loss for the period amounted to $1.5 million, which compares to $2.3 million in the same period of last year.
Two Wall Street analysts have an average “Moderate Buy” rating on Orion Energy stock. The analysts have set a price forecast of $3.00, which represents a 256.29% increase from the previous price, reveals TipRanks.
3. Processa Pharmaceuticals, Inc. (NASDAQ:PCSA)
Average price per share: $0.80
Market capitalization: $2.784 million
Third among penny stocks that have seen interest from insiders recently is another pharmaceutical company – Processa Pharmaceuticals. The Hanover, Maryland-headquartered company relies on a unique approach to developing oncology treatments. Processa Pharmaceuticals is focused on improving the safety and efficacy of existing cancer treatments. Its treatments are modifications of existing FDA-approved oncology drugs that keep the same mechanisms of killing the cancer cells.
On January 27, four insiders, including the company’s CEO, purchased $213,411 worth of Processa Pharmaceuticals shares at an average price of $0.80 per share. These acquisitions are a part of the company’s $5 million public offering priced at the market under NASDAQ rules.
Currently, the stock is trading at $0.59 per share, having declined 33.22% year-to-date. Over the last 12 months, its shares lost 76.30%.
For the third quarter of 2024, Processa Pharmaceuticals reported research and development expenses of $2.3 million, compared with $1.2 million for the third quarter of 2023. General and administrative expenses were $1.1 million, which compares to $1.0 million for the same period of the prior year. Net loss for the quarter reached $3.4 million, or $1.03 per share, compared with net loss of $2.1 million, or $1.54 per share in the comparable period of 2023. As of September 30, 2024, cash and cash equivalents were $2.9 million.
According to two analysts, the stock is a “Strong Buy,” with a 12-month stock price target of $5.0, as per data from StockAnalysis.
2. My City Builders, Inc. (OTCPK:MYCB)
Average price per share: $0.40
Market capitalization: $8.07 million
My City Builders is a real estate company that acquires, develops, leases, and sells real estate housing properties to low-income individuals and families. Previously the company was known under the name iMine Corporation, which it changed last year.
On January 22, three investors, including the company’s CEO, and CFO, acquired a total of $1.72 million worth of My City Builders shares at a price of $0.40 per share. Since the beginning of the year, the stock gained 10.25% and is now trading at $0.67 per share. Over the last 12 months, its shares gained 110.16%.
It looks like analysts have not initiated coverage on this stock yet. There could be various reasons for this – this is a young company that hasn’t yet matured in the market. Also, smaller companies do not attract as much attention from analysts compared to larger companies. Furthermore, the company is traded over-the-counter (OTC), which makes it less visible to investors. OTC stocks also tend to have lower trading volumes compared to those on major exchanges, such as NYSE and NASDAQ.
1. Earth Science Tech, Inc. (OTCPK:ETST)
Average price per share: $0.21
Market capitalization: $49.09 million
Another OTC traded stock makes the first place on this list of the 10 cheapest stocks insiders are buying recently. Earth Science Tech is a company that operates a telemedicine referral site focused on health and wellness for men and women. It also runs a pharmacy under the RxCompound name. Previously, the company was known under the name Ultimate Novelty Sports, Inc., until it changed its name in 2014.
In January, three insiders, including CFO, and COO, bought a total of around $32,600 worth of Earth Science Tech shares at an average price of $0.21 per share. The stock is now trading at $0.16 per share, having gained 24.77% since the beginning of the year.
Currently, there’s not any analyst coverage on this stock, probably due to it being traded on OTC. However, the latest insider purchases by the company’s officers and directors signal the management’s confidence in the company’s future results.
Overall, ETST is first among the 10 cheapest stocks insiders are buying recently. While we acknowledge the potential of ETST 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 ETST 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
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